Momentus Inc (NASDAQ:MNTS), a 'space tug' newcomer on the markets, received its first 'buy' recommendation from Deutsche Bank.
The shares were given a US$10 price target, compared to a closing price of US$4 on Monday but around level with the price at which the company listed via a merger with a special purpose acquisition company (SPAC) called Stable Road Capital last August.
Momentus, which picks up payloads and other cargo that have been rocketed into space and takes them to their desired orbits, has unique propulsion technology that will make it a winner in the long run, according to the bank's analysts.
Aiming to deliver satellites faster than typical electric thrusters, Momentus "is more efficient …driven by the use of water plasma propulsion”.
The analysts continued: “Water can also be stored efficiently at low pressures and over the temperature ranges in which spacecraft equipment typically operates. This avoids the need to use high-pressure tanks which pose an explosion hazard.”
As water is accessible beyond Earth, this gives the technology the potential to be used in deeper space missions, in future.
While Momentus does not yet have much to talk about in terms of revenues, Deutsche estimates sales will reach roughly US$228mln by 2025.
The target price equates to a market cap of around US$800mln, or roughly 3.5 times that 2025 sales level.