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HawkEye 360 Has Differentiated Portfolio, Limited Room for Upside, BofA Says

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HawkEye 360 (HAWK) is a provider of radio frequency signal intelligence to US and global clients that is differentiated by its constellation of more than 30 satellites on orbit, but its current valuation already reflects much of the upside, BofA said in a note Monday.

The company is "levered to a growing market for [signals intelligence] and space-based defense, with demand set to ramp with budget support," the investment firm said.

Also, HawkEye's "deep ties" to several government agencies underpin its visibility and place it "within priority defense areas," BofA said.

The investment firm said it expects the company's adjusted earnings before interest, taxes, depreciation, and amortization margin to rise from 21% in 2025 to 38% by 2030 supported by factors like "high incremental margins on data resale and lower-cost satellites."

However, while HawkEye's revenue visibility is backed by a solid backlog and government demand, its risk/reward proposition also seems to be "reasonably balanced at current levels," the note said.

BofA started coverage of HawkEye 360 with a neutral rating and a $34 price target.

Price: $32.81, Change: $-0.20, Percent Change: -0.62%

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