MAXR - Maxar slips 6% as BofA cuts to Underperform amid launch delays

Maxar Technologies stock (NYSE:MAXR) has dipped 6.3% following a downgrade to Underperform at BofA, trimming growth expectations after the company delayed the first launch of its Legion WorldView satellites. The newest delay comes after a test configuration anomaly that occurred during environmental testing of the second satellite, analyst Ronald Epstein notes, adding that given the latest expectations for a September launch (delayed this time from June-July 2022), Maxar should have three ready satellites, providing an extra buffer. Meanwhile, the Electro-Optical Commercial Layer contract, which will replace the EnhancedView contract, was expected in Q1 from the National Reconnaissance Office. That award could come anytime, but Maxar notes the delay is a headwind to upside expectations in Earth Intelligence revenues. "In our view, MAXR will win a piece of the EOCL contract but at the risk of lower margins than witnessed on the EnhancedView contract," Epstein writes. He's cutting the firm's price

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Maxar slips 6% as BofA cuts to Underperform amid launch delays