The Materials sector company, UrtheCast (TSX: UR), has received a rating update from a Wall Street analyst today. Canaccord Genuity’s analyst Doug Taylor reiterates their Hold rating on the shares, with a C$0.35 price target.
“We maintain a HOLD rating now with a C$0.35 target (from C$0.50) after UrtheCast’s Q1 results and financing update. The quarterly results were below expectations and confirm that the existing business continues to underperform and consume cash. As we noted in recent work, the story increasingly is geared towards the company’s UrtheDaily project. The project is ambitious and potentially provides significant upside potential. With that said, the proposed financing of the US$195M program significantly dilutes equity shareholders. The degree of senior debt (now seen closing Friday) and number of warrants outstanding creates a risk/reward relationship that makes us very cautious on UR shares until we see significant progress made on rightsizing the existing operations, advancing UrtheDaily (financing, presales and construction), and surfacing some value from the SAR IP.”
According to TipRanks.com, Taylor is ranked #1206 out of 4800 analysts.
UrtheCast has an analyst consensus of Moderate Buy, with a price target consensus of C$0.35.
The company has a one-year high of C$1.64 and a one-year low of C$0.27. Currently, UrtheCast has an average volume of 707.2K.
UrtheCast Corp. provides high-definition videos of planet earth. The company operates four Earth observation sensors in space, including two cameras aboard the International Space Station and two satellites, Deimos-1 and Deimos-2. It is also developing and anticipates launching fully-integrated constellation of multispectral optical and SAR satellites.
The company’s shares closed on Tuesday at C$0.30, close to its 52-week low of C$0.27.