Terran Orbital Corporation (NYSE: LLAP) is a leading manufacturer of small satellites serving the aerospace and defense industries. After securing a multi-billion contract recently, LLAP stock has been landing on investors’ radars as the company could be poised for major growth in the long term. Based on this, LLAP soared by as much as 100% since this contract could be the first of additional lucrative contracts the company could secure in the future. Considering the company’s strong relationship with a major defense company, LLAP stock could be one of the space stocks to buy at current levels.
LLAP Stock News
Providing end-to-end satellite solutions, LLAP is making headlines after its subsidiary – Tyvak Nano-Satellite Systems, Inc. was awarded a $2.4 billion contract to design, build, and deploy 288 low-earth orbit satellites for Rivada Space Network. Moreover, LLAP will develop 12 spare satellites – taking the total number of satellites in the contract to 300. According to this contract, LLAP will act as the prime contractor to design and manufacture these satellites while also developing portions of the ground segment. Considering the scale of this contract, LLAP could witness substantial growth in the future as it could be able to sign additional lucrative contracts.
With a market cap of only $422.7 million, this contract could signal a tremendous shift in LLAP’s future prospects. Since LLAP reported a revenue pipeline of $15 billion in its Q3 presentation, the Rivada contract could be the first step for the company to achieve such revenues. In this way, LLAP stock could be one of the best space stocks to invest in before it reaches its full potential.
Another reason LLAP could be set to reach new highs is its relationship with major defense company Lockheed Martin (NYSE: LMT). Back in October, LMT invested $100 million in LLAP in exchange for convertible notes and warrants issued by LLAP. Through these funds, LLAP intends to acquire additional satellite assembly space, increase module production, and expand its advanced manufacturing capabilities. On that note, LLAP’s planned expansion on Florida’s Space Coast in partnership with Space Florida was accelerated and will be based in California. With this in mind, LLAP has been actively expanding its capabilities as it added more than 140 thousand square feet to its California facility in 2022. Based on this, LLAP could be set up for significant long-term growth.
In light of this investment, both companies entered into a new strategic cooperation agreement that runs through 2035. In this way, LLAP can pursue several opportunities to work on projects with LMT. Considering LMT’s stature in the defense sector, LLAP could be on track to grow its revenues substantially as it continues to secure projects with LMT.
On that note, LLAP has already partnered with LMT on a number of projects. Most recently, LLAP’s GEOStare SV2 spacecraft completed a commercial data services imagery contract for LMT. During the duration of this contract, LLAP showed great ability to re-task the spacecraft to assemble a catalog of thousands of images to support an independent research project led by LMT.
Moreover, LLAP delivered 10 satellite buses to LMT in support of the Space Development Agency’s (SDA) Tranche 0 Transport Layer. To fulfill this contract, LLAP delivered the satellite buses in a 6-week period which highlights the company’s impressive manufacturing capabilities. Furthermore, LLAP will also design and build the buses for LMT’s SDA Tranche 1 Transport Layer satellites which could allow the company to further show its capabilities to potential customers. In light of this strong connection to LMT, LLAP stock could be one of the best space stocks to invest in for long-term investors.
LLAP Stock Financials
Looking into LLAP’s Q3 earnings, the company grew its assets to $150.2 million compared to $135.3 million at the beginning of 2022 while growing its cash balance from $27.3 million to $35.8 million over the same period. At the same time, LLAP reduced its liabilities from $226.7 million at the beginning of the year to $218.1 million which is mainly due to the company’s long-term debt declining from $115.1 million to $99.3 million.
In terms of revenues, LLAP reported significant YoY growth to $27.8 million compared to $10.2 million. However, LLAP’s operating loss increased from $9.9 million to $24.6 million due to operating costs climbing to $24.6 million compared to $11.4 million. In this way, LLAP’s net loss widened to $27.3 million compared to $12.3 million a year ago. Considering the company’s recent $2.4 billion contract, LLAP could be a step closer to breakeven over the coming years.
@DonnieStocks is watching LLAP to break $3.13 for another run.
@DeepBlueEquity believes LLAP stock could be undervalued at its current PPS thanks to its recent lucrative contract.
LLAP stock price is currently at $2.97 and the stock shows supports near 2.49, 1.99, and 1.75. Meanwhile, LLAP has resistances near 3.17 and 3.83. After the company secured the multi-billion Rivada contract, LLAP stock soared by as much as 100% as the company could be on track for impressive revenue growth. Although the stock slightly cooled down following its spike, it is trading near its support which is a key price level to watch. If the current support holds, LLAP could be poised to run considering the scale of its contract. However, if the stock breaks through the support, it could witness strong selling pressure to fill the gap near $1.7. In that case, LLAP could be a bargain given its revenue pipeline of $15 billion.
In light of LLAP’s impressive run, accumulation is on a steep downward trend which could be attributed to investors taking profits. Similarly, the MACD appears to be approaching a bearish crossover which could signal a shift in the trend. Meanwhile, the RSI cooled down from 88 to 67 indicating that LLAP could be slightly overbought. Based on these indicators, bullish investors could wait for LLAP to consolidate before buying to have a better entry into the stock. LLAP has an OS of 142.3 million and a low float of 55.1 million.
LLAP Stock Forecast
With a revenue pipeline of $15 billion, LLAP could be on track to realize such revenues after receiving its $2.4 billion contract from Rivada. As the company could now grow its revenues substantially, the long-term LLAP stock forecast appears to be bullish. Another reason LLAP could be poised for long-term growth is its relationship with LMT. Considering that LMT invested $100 million in the company, LLAP could be set for impressive growth as it secures additional contracts. Given the company’s efforts to expand its operations and improve its manufacturing capabilities, LLAP stock could be one of the space stocks worth investing in before it explodes.
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