Benzinga | Oct 4, 2021 12:05PM EDT

For Astra Space, Timing Is Critical: Analyst

Astra Space Inc (NASDAQ:ASTR) has limited near-term upside due to development and commercialization risks ahead, according to BofA Securities.

The Astra Space Analyst: Ronald Epstein initiated coverage of Astra Space with an Underperform rating and $9 price target.

The Astra Space Thesis: Although the company is gearing up to target "the growing and niche small satellite (smallsat) launch market," its lack of proven performance could weigh on the stock, Epstein said in the initiation note.

"Coupled with the Apollo Fusion acquisition, Astra appears well positioned to benefit from an overall rise in smallsat launch market value, which is expected to increase by high single digits annually through 2025," the analyst said.

Astra Space has registered only one partially successful mission, he said.

"Continued failed launches could further push out certain milestones, significantly limiting the potential market share that Astra could attain," Epstein said.

"Furthermore, on a relative basis, the company remains several paces behind its closest competitors, Rocket Lab (NASDAQ:RKLB) and Virgin Orbit," he added.

ASTR Price Action: Shares of Astra Space had declined by 6.98% to $7.85 at the time of publication Monday.