BlackSky Technology (BKSY) Stock Forecast & Price Target

BlackSky Technology Inc. has demonstrated a modest year-over-year revenue increase on a normalized basis, indicating positive momentum as the business outlook and revenue visibility continue to improve. The successful launch of its first Gen-3 satellite and the recent acquisition of over $150.0 million in contracts highlight the company's capacity to unlock new revenue opportunities, particularly in response to heightened demand stemming from geopolitical instability. With expectations of accelerating recurring revenue growth and a profitability profile akin to high-quality SaaS companies, BlackSky is positioned for a favorable valuation multiple in the future.

BlackSky Technology Inc. experienced disappointing financial performance, with 4Q24 revenue of $30.4 million falling short of both the internal forecast and broader market expectations, contributing to a significant 24.2% decline in its stock price. The company's projected revenue for 2025 has also been slightly reduced to $131.0 million, remaining within its guided range but reflecting a lack of growth momentum. Additionally, challenges such as higher-than-anticipated overhead costs and underperformance in both professional and engineering services segments further hinder the company's profitability outlook, presenting ongoing headwinds to its EBITDA.