- BofA analyst Ronald Epstein updated price targets for select Space-related stocks to account for changing market dynamics, including anticipated Fed rate hikes that drive his discount rate up.
- The analyst downgraded Spire Global Inc (NYSE:SPIR) to Underperform from Neutral and lowered the price target of $1.75 (a downside of 30%) from $5.05.
- Epstein views Spire's constellation of LEMUR satellites as differentiated, and he believes his prior bull case growth rate forecast of 54% is now "overly optimistic."
- He adds that his lowered rating is based on the valuation given his revised price target.
- The analyst upgraded Astra Space Inc (NASDAQ:ASTR) to Neutral from Underperform and lowered the price target to $7 (an upside of 35%) from $9.
- Epstein looks favorably on Astra's accomplishment of joining the ranks as one of the few privately-held U.S. companies to reach orbit successfully.
- He contends that "this milestone is just the beginning of the company's journey toward achieving a consistent launch cadence," adding that his raised rating is based on the valuation given his revised price target.
- Price Action: SPIR shares are trading lower by 0.42% at $2.49 and ASTR by 2.19% at $5.14 on Wednesday's last check.
