Maxar Technology (MAXR.TO)

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Hi,

Could you please comment on Maxar Technology (MAXR.TO)? Does it have a future for growth? Thank you.

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Asked on May 11, 2020 1:16 am
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Hi there,

I've seen plenty of interest in Maxar Technologies over the past handful of years as its share prices continues to crater. Investors have considered Maxar undervalued for a number of years. Unfortunately, it has been akin to catching a falling knife.

One quick look at their 5YR chart, and it doesn't look pretty. Although history is not necessarily an indicator to future success (or in this case future struggles), those with a strong and reliable history are definitely considered less risky.

After the bell yesterday, Maxar released quarter results that once again disappointed. It missed on both the top and bottom lines and along with it, a softer than expected outlook was announced. The company has not beat on both the top and bottom line since the 2nd quarter of 2018.

The company isn't expected return to meaningful growth until 2022 and given recent results, we may see further analyst downgrades in the near future.

This is a company that is likely to expect considerable volatility over the next year.

Mat

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Posted by Mathieu Litalien
Answered on May 12, 2020 5:55 am