HawkEye 360 (HAWK) H2 contract prospects look constructive, with the Middle East appearing as the most immediate catalyst, while broader international demand stands at record levels with several deals slated to close in H2, RBC Capital Markets said in a Thursday note.
Additionally, the US contract delays that created near-term headwinds are expected to be resolved in H2, with "significant" award decisions anticipated before year-end, according to the note.
HawkEye 360's Clusters 15 and 16, the company's satellite deployment groups, are expected to be launched sometime in H2, with RBC estimating both to be in Q4. Additionally, Block 3 satellites are slated for launch in early 2027, and Block 4 launch is slated for end of 2027, according to the note.
"We believe the increased revisit rates, increased collection capacity, and expanded onboard processing are critical to advancing contract discussions with customers, especially those with defined latency parameters," RBC analysts said.
RBC maintained its outperform rating with a $33 price target.
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