In May 25 trading, shares of space business Maxar Technologies Ltd. (NYSE: MAXR) surged 17.89 percent to $28.86. The cause for this was the unveiling of the world’s biggest defense deal.
Top 5 EV Tech Stocks to Buy for 2023
The electric vehicle boom is accelerating – and fast. According a new report published by BloombergNEF, annual spending on passenger EVs hit $388 billion in 2022, up 53% from the year before. Like we said, the boom is accelerating – and the time to buy EV-related tech stocks is now. Get our free report, "Top 5 EV Tech Stocks to Buy for 2023".
Click Here to Download the FREE Report.
Sponsored
MAXR has signed a five-year contract with the US National Reconnaissance Office (NRO), with an option to extend it until 2032. It entails the provision of satellite imaging data and is a continuation of Maxar’s more than 20-year relationship with the US intelligence community.
The contract, however, has now been expanded to cover new nighttime infrared monitoring capabilities as well as direct contacts with deployed troops or other customers.
The contract’s terms are unknown, however, it is believed that this is NRO’s largest contract with a commercial provider. EOCL (Electro-Optical Commercial Layer) was the contract’s name, while EVFO was the new set of services (Enhanced View Follow-On).
With multi-year contracts and solid cash flow, the selling of ground remote sensing (ERS) data is Maxar’s most resilient business sector. The need for remote sensing is growing, and while commercial organizations (such as Google Maps) formerly accounted for a large portion of revenues, defense companies are increasingly showing a strong interest in Maxar services.
Commercial contractors, such as Maxar, allow defense departments to manage information more freely, allowing them to incorporate third-party analytical organizations in remote sensing data analysis or grant third-country access to satellite images. In light of this, Maxar Technologies Ltd. (MAXR) may anticipate increased sales in the following years.
Over the last year, the company’s stock has dropped by -7.53 percent. The stock price has increased by 5.91 percent in the previous five transactions and has decreased by -14.59 percent in the last 30 trades. However, in the last six months, the share price fell by -3.22 percent, and in the prior three months, it rose by 3.03 percent.