January 8, 2019 / 6:28 PM / a year ago

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

(Updates share movement)

** U.S.-listed shares of space technology company plunge ~31 pct to record low of $5.04, a day after company reported failure of its WorldView-4 imaging satellite

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

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

** CS says despite Tuesday’s losses, 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 going public in 2001 (Reporting by Medha Singh & Divya R in Bengaluru)

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