Firefly Aerospace Faces Class Action Lawsuit Over IPO Misstatements

Written by Emily J. Thompson, Senior Investment Analyst

FLY.O-2.03%

Source: PRnewswire

Updated: 1 hour ago

0mins

Source: PRnewswire

Class Action Initiated: Kessler Topaz Meltzer & Check, LLP has filed a class action lawsuit against Firefly Aerospace on behalf of investors who purchased shares during the IPO on August 7, 2025, highlighting significant investor concerns regarding the company's transparency.
False Statement Allegations: The lawsuit alleges that Firefly overstated the demand and growth prospects for its Spacecraft Solutions, severely undermining investor confidence in the company's future and potentially impacting its stock price performance.
Alpha Rocket Program Issues: The complaint points out that the Alpha rocket program fell short of its claimed operational readiness and commercial viability, exacerbating investor skepticism about the company's operational capabilities and risking customer attrition.
Investor Rights Protection: Investors can seek to be appointed as lead plaintiffs by January 12, 2026, indicating a strong emphasis on corporate governance and transparency, which may compel Firefly to enhance its disclosure practices and governance structure.

FLY.O

$0.0000%Past 6 months

Line

Candle

YTD

No Data

Intellectia

Analyst Views on FLY

Wall Street analysts forecast FLY stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for FLY is 42.29 USD with a low forecast of 27.00 USD and a high forecast of 65.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.

7 Analyst Rating

5 Buy

2 Hold

0 Sell

Moderate Buy

Current: 20.220

Low

27.00

Averages

42.29

High

65.00

Current: 20.220

Low

27.00

Averages

42.29

High

65.00

JPMorgan

Seth Seifman

Overweight

downgrade

$55 -> $28

2025-11-25

Reason

JPMorgan

Seth Seifman

Price Target

$55 -> $28

2025-11-25

downgrade

Overweight

Reason

JPMorgan analyst Seth Seifman lowered the firm's price target on FireFly Aerospace to $28 from $55 and keeps an Overweight rating on the shares. The firm attributes the stock's underperformance to difficulties in ramping up Alpha launches in the near term. It cut estimates o reflect a more gradual ramp in Alpha launches and a more "company-funded approach" to the Golden Dome from the Department of Defense.

Roth Capital

Buy

maintain

$30

2025-11-24

Reason

Roth Capital

Price Target

$30

2025-11-24

maintain

Buy

Reason

Roth Capital keeps a Buy rating and $30 price target on FireFly Aerospace. The company's portfolio of launch and spacecraft offerings can drive diverse growth over the next several quarters, and the firm is encouraged that FireFly has secular opportunities in launch, lunar missions, and defense programs such as Golden Dome, the analyst tells investors in a research note.

Goldman Sachs

Anthony Valentini

Neutral

initiated

$29

2025-11-19

Reason

Goldman Sachs

Anthony Valentini

Price Target

$29

2025-11-19

initiated

Neutral

Reason

Goldman Sachs analyst Anthony Valentini, assuming coverage from Noah Poponak, reinstated coverage of FireFly Aerospace with a Neutral rating and $29 price target. The company is serving a nascent space market that is bound to grow significantly in the coming years and fills a white space in a supply-constrained space launch market, the analyst tells investors in a research note. Goldman adds however that while it continues to see an attractive medium- to long-term investment case for FireFly, the launch industry comes with inherent risk, and the company's recent launch mishaps warrant caution.

Morgan Stanley

Equal Weight

downgrade

$52 -> $27

2025-11-17

Reason

Morgan Stanley

Price Target

$52 -> $27

2025-11-17

downgrade

Equal Weight

Reason

Morgan Stanley lowered the firm's price target on FireFly Aerospace (FLY) to $27 from $52 and keeps an Equal Weight rating on the shares. With the stock trading about 49% below its August IPO price of $45, the firm is "not surprised by the market's warm reaction" to what it calls "solid" Q3 results. However, given's FireFly's more limited successful launch track record and more recent Alpha mishaps, the firm expects shares to trade at a steeper discount to Space launch peer Rocket Lab (RKLB) and closer to Space infrastructure and exploration peers until FireFly re-establishes its footing with Alpha, the analyst tells investors.

See All Ratings

About FLY

Firefly Aerospace Inc. is a space and defense technology company. The Company provides comprehensive mission solutions to national security, government, and commercial customers. It has designed, developed, and deployed its vehicles and dynamic spacecraft solutions to support critical customer missions across the space domain. It has a differentiated and scalable platform of Launch and Spacecraft Solutions with flight heritage. Within Launch, it has two offerings built on common technologies: Alpha and Eclipse. Alpha is a United States-based orbital rocket in the 1,000 kilograms class to successfully reach orbit, with four launches completed. Eclipse, a reusable and scaled up version of Alpha. Its Spacecraft Solutions include Blue Ghost lander (Blue Ghost) and Elytra offerings, highlight the heritage of common technologies from its launch vehicles. Blue Ghost Lander and Elytra are highly maneuverable spacecraft enabled by high-performance rocket engine technology.

About the author

Preview

Emily J. Thompson

Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.