Analysts Blast Maxar Technologies After Restructuring News

CIBC downgraded MAXR stock to "underperform"

Mar 1, 2019 at 10:07 AM
    facebook X logo linkedin


    The shares of Maxar Technologies Inc (NYSE:MAXR) are down 23.4% at $5.60, after the space technology firm said it was cutting 4% of its workforce -- more than 200 positions -- as part of a broader restructuring plan. The company also reported weak fourth-quarter results, lowered its dividend payment, and said it's restructuring its geostationary orbit satellite business.

    Analyst reaction has been swift, with CIBC downgrading the stock to "underperform" from "neutral," and lowering its price target to $5 from $6. MAXR's price target was also dropped at Raymond James (to $20) and Canaccord Genuity (to $8), with the latter brokerage firm noting, "Those thinking that this strategic review could potentially provide some relief for the company’s highly levered balance sheet will likely be disappointed," and that it's "challenging to recommend the stock" "at the moment.

    More broadly speaking, the majority of the five covering brokerage firms are skeptical of the equity, though two still maintain a "buy" or better rating. However, the average 12-month price target of $12.19 is a stiff premium to current trading levels, suggesting more price-target cuts could come down the pike.

    And while short sellers are sidelined today with MAXR on the short-sale restricted list, they've been in the drivers seat on a stock that was already down 39% year-to-date heading into today's trading. Short interest jumped 19.1% in the two most recent reporting periods to 6.2 million shares, representing 10.7% of the stock's available float.

     

     

    Target Effortless Triple-Digit Gains Every Sunday Evening For Life!

    This is your chance to triple your profit potential on Sunday evenings, without spending all your free time watching the market.

    On Sundays, as a Weekend Plus subscriber, you’ll get up to 6 trades every Sunday, each targeting gains of 200% or more.

    Start targeting gains like the ones our subscribers have seen recently, including:

    213.3% GAIN on AutoNation calls
    100.0% GAIN on Monster Beverage calls
    100.4% GAIN on Walgreens Boots Alliance puts
    100.4% GAIN on ON Semiconductor calls
    257.7% GAIN on Dell calls

    101.0% GAIN on Apollo Global Management calls
    103.6% GAIN on JP Morgan  Chase calls
    105.3% GAIN on DraftKings calls
    101.3% GAIN on Airbnb calls
    203.0% GAIN on Shopify calls
    102.0% GAIN on Cboe Global Markets calls
    100.9% GAIN on Boeing calls
    102.1% GAIN on Microsoft puts
    102.3% GAIN on First Solar calls
    101.5% GAIN on PulteGroup calls
    101.0% GAIN on Apple calls
    209.4% GAIN on NXP Semiconductors calls
    100.8% GAIN on Uber Technologies calls
    100.4% GAIN on Academy Sports and Outdoors puts
    102.2% GAIN on Trade Desk calls
    100.8% GAIN on DoorDash calls
    100.0% GAIN on Camping World Holdings puts
    100.0% GAIN on Cboe Global Markets calls
    100.2% GAIN on C3.ai calls
    238.5% GAIN on Oracle calls

     
     
     


     
     

    Rainmaker Ads CGI