Jefferies Initiates BlackSky with Buy Rating, Predicts Sales Doubling to $211 Million by 2028
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Dec 22 2025
0mins
Source: CNBC
- Sales Growth Potential: Jefferies forecasts that accelerating international demand could double BlackSky's sales to $211 million by 2028, up from $108 million today, indicating strong market expansion potential.
- Investment Rating Upgrade: The investment firm initiated coverage on BlackSky with a buy rating and a $23 price target, implying a 19% upside, reflecting optimistic market expectations for its future performance.
- Profitability Improvement: Analysts expect BlackSky's margin profitability to improve, with incremental margins in the 60% range, alongside volume recovery, supporting a path to EBITDA margins exceeding 40%, enhancing investment appeal.
- Technology-Driven Growth: With the full rollout of BlackSky's Gen-3 and AROS video imaging satellites, the company is poised to benefit from technological advancements, further driving the expansion of its international customer base and sales growth.
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Analyst Views on BKSY
Wall Street analysts forecast BKSY stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for BKSY is 26.33 USD with a low forecast of 20.00 USD and a high forecast of 42.00 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
6 Buy
1 Hold
0 Sell
Strong Buy
Current: 27.730
Low
20.00
Averages
26.33
High
42.00
Current: 27.730
Low
20.00
Averages
26.33
High
42.00
About BKSY
BlackSky Technology Inc. is a space-based intelligence company. The Company delivers on-demand, high frequency imagery, monitoring and analytics of the strategic locations, economic assets, and events in the world. It designs, owns, and operates low earth orbit small satellite constellations. Its BlackSky Spectra platform processes data from its constellation and from other third-party sensors to develop the critical insights and analytics that its customers require. Its Spectra is a first-of-its-kind commercial platform that helps customers manage their monitoring activities from space. Spectra software platform processes millions of observations a day from both its proprietary satellite constellations and by using data from multiple external sources, including imaging, radar and radio frequency satellites, environmental sensors, asset tracking sensors, Internet of Thing connected devices, internet-enabled narrative sources, and a variety of geotemporal data feeds.
About the author
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.
BKSY Options Analysis: Put Contract Yield Boost at 44.51%
- Put Contract Appeal: The current bid for the $25.00 put contract is $1.95, and if an investor sells-to-open this contract, they commit to buying shares at $25.00, resulting in a cost basis of $23.05, which represents a 9% discount to the current price of $27.39, making it attractive for potential BKSY investors.
- Yield Potential Analysis: Should the put contract expire worthless, it would yield a 7.80% return on the cash commitment, equating to an annualized yield boost of 44.51%, highlighting the contract's potential for income generation and attracting yield-seeking investors.
- Call Contract Returns: The $30.00 call contract has a current bid of $2.00, and if an investor buys BKSY shares at $27.39 and sells this call, they could achieve a total return of 16.83% if the stock is called away at expiration, showcasing the attractiveness of this strategy.
- Risk-Reward Balance: The $30.00 call contract has a 50% chance of expiring worthless, allowing investors to retain both their shares and the premium collected, which would provide an additional return boost of 41.67% annualized, making this contract a favorable risk-reward option.
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Jefferies Initiates Coverage on BlackSky with $23 Price Target
- Rating Upgrade: Jefferies initiated coverage on BlackSky Technology (BKSY) this morning with a 'buy' rating and a price target of $23 within a year, reflecting strong market confidence in the stock's potential.
- Rapid Target Achievement: BlackSky reached the analyst's price target by 9:40 a.m. on the same day the rating was released, indicating positive market expectations despite the absence of significant news affecting the stock.
- Revenue Growth Potential: Jefferies anticipates that BlackSky's refreshed constellation of spy satellites could drive annual revenue growth of 25%, projecting sales to double from $102 million today to $211 million by 2028, showcasing robust growth prospects.
- Profitability Outlook: Analysts believe that BlackSky's satellite constellation could eventually support annual revenues exceeding $400 million with EBITDA margins as high as 65%, although most analysts suggest this target may not be reached until 2031, Jefferies expects profitability to be achieved sooner.
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