Company News

BUZZ-Maxar Technologies: Drops for the second day on failure of imaging satellite

** U.S.-listed shares of space technology company down 1.7 pct at $7.89 in light premarket volume, a day after the stock tumbled 31 pct on failure of its WorldView-4 imaging satellite

** Credit Suisse cuts rating to “underperform” from “neutral” and trims PT to $5.88 from $17, the lowest on the Wall Street; median PT at $33.78

** BMO downgrades to “market perform” from “outperform”; trims PT on the Canada-listed shares

** CS says despite the shares losing 31 pct, shares are still undesirable; brokerage also lowers its 2019 and 2020 earnings estimates

** Says a dividend cut now seems more likely and other risks include precarious liquidity position, inability to launch new capacity

** CIBC, which cut its PT to $15, says while the satellite is fully insured, the loss of rev associated with this satellite can only be partially mitigated

** BMO believes the satellite failure could potentially affect the co’s longer-term growth prospects and the EBITDA multiples that a potential acquirer might pay for the remaining business

** MAXR plunged 81 pct in 2018, its worst annual performance since the co went public in 2001 (Reporting by Medha Singh in Bengaluru)