Why BlackSky Stock Is Just Too Cheap To Ignore

2025-11-10 11:35:49 ET

Thesis

BlackSky Technology Inc. ( BKSY ) posted a 3Q25 GAAP EPS loss of -$0.44, which missed estimates by $0.07. Revenue also didn't impress, coming in at $19.6 million, down 13.1% year-over-year and missing by a hefty $9.03 million. The company’s backlog now stands at $322.7 million and is growing. The good news is that about 91% of those orders come from international contracts. Cash on hand increased to $147.6 million, and management noted the latest step to get the Gen 3 constellation up in the sky. Launching satellites is no cheap task, and I'm betting there are a number of contract milestone payments that are dependent on the Gen 3 constellation coverage being fully active. I think we should also see more Gen 3 demand going into 4Q25 and early 2026, and with this most recent pullback in stock price, it's a good time for new investors to open up a stock position. You can now pick up shares in the $15 range, which have fallen a long way from the $31 high we saw last month. The good thing is that I'm seeing a trend here; each time this stock sees a big pullback such as this, it is usually followed by a nice run-up, as I'll explain. I'm initiating my coverage for BlackSky with a buy call, as the price is just too attractive to ignore, with the Gen 3 constellation nearing completion....

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