Report by Veritas Investment Research
Two years too late - persistent delays to the launch of MAXR’s next-generation Legion constellation of satellites has severely weakened the investment case. MAXR will incur higher capex and lower organic growth than estimated by the Street. As a result, the company will fail to meet its de-leveraging target by the end of 2024. Deleveraging is a key tenet of the bull case; without a cleaned-up balance sheet, MAXR will be unable to close the persistent trading multiple gap vs. peers.