Space company Maxar shares rally as JP Morgan calls for stock to climb over 70%

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J.P. Morgan began coverage of Maxar Technologies on Tuesday with an overweight rating.

J.P. Morgan says Maxar Technologies is in the early stages of a turnaround that would yield over 70% upside by the end of 2020."We see Maxar as a high-risk/high-reward opportunity in the Space industry," J.P. Morgan analyst Benjamin Arnstein said in a note.on Tuesday with an overweight rating, telling investors that the diminished space conglomerate is in the early stages of a turnaround that would yield over 70% upside by the end of 2020.

Maxar's stock jumped as much as 13.1% in trading from its previous close of $7.03 a share. J.P. Morgan has a $12 price target on the stock. Arnstein explained that the firm's target is conservative, based on its sum-of-the-parts analysis of Maxar's four business units.J.P. Morgan's "blue-sky scenario" would see Maxar's stock at over $20 a share, which would represent an increase of nearly 185%.

About 2½ years ago, Maxar's stock traded as high as $66.46 a share and was undergoing a merger with Space Systems Loral , the satellite manufacturing company that would become a Maxar unit.

 

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