Craig-Hallum initiated coverage on York Space Systems on Wednesday with a hold rating and a price target of $11.00, citing slower conversion of government contracts and supply chain delays that prompted a downward revision in the company’s guidance.
The brokerage set a $11.00 target against York Space Systems’ current trading price of $9.41, which remains above the 52-week low of $8.89. Analysts do not expect the company to achieve profitability in the current year, despite its position as a leading launch provider in the NewSpace segment with more military satellites deployed than peers.
York Space Systems reported second-quarter revenue of $92.55 million, a 10% increase year-over-year, but revised its fiscal 2026 revenue guidance to a range of $375 million to $405 million, down from a previous midpoint of $570 million. The downward adjustment reflects delays in contract execution and supply chain constraints, according to the report.
The U.S. Department of Defense’s space sector spending is projected to rise sharply, from approximately $54 billion in fiscal 2025 to $68 billion in fiscal 2026, with a proposed $109 billion in fiscal 2027. This expansion reflects growing demand for low-Earth orbit satellite constellations, as legacy geostationary programs are not being renewed. The shift creates opportunities for new entrants, including York Space Systems, which competes in the defense and space infrastructure markets.
InvestingPro’s fair value targets for York Space Systems range from $13.50 to $35.00 among analysts. Canaccord set a $13.50 target while downgrading its rating to hold from buy, and JPMorgan reduced its target to $17.00 with a downgrade to neutral from overweight. Jefferies and Needham maintained buy ratings with targets of $15.00 and $18.00, respectively.
The coverage follows historical examples cited by InvestingPro’s ProPicks IA, which highlighted gains of 231.5% for Siemens Energy and 189% for Sandisk under similar conditions.
