Special report: An analyst has put a 74c share price target on ASX-listed nano-satellite maker Sky and Space Global.

The valuation by EverBlu Capital Research is 92 per cent higher than the stock’s (ASX:SAS) 5.4c close on Friday.

The reason EverBlu gives for its optimism is the steady progress Sky and Space has made in preparing to launch its next-generation Pearls nanosatellites as well as growing demand for small satellite technology.

Last week, the company put out a wide-ranging company update, telling investors about the significant progress it has made toward launching the world’s first fully-autonomous nano-satellite communications network.

Sky and Space plans to launch 200 of its Pearls nanosatellites over the course of 2019 and 2020.

The first batch is still on track for next year with finishing touches underway on the production facilities, installation and propulsion systems.

It’s just one of a number of behind-the-scenes developments happening at Sky and Space.

The company says it’s nearing the end of the tender process for the development of its the portable end-user devices, which will enable users to access the new communications network and make voice calls and send instant messages.

The company says it’s also made ‘significant progress’ in the development of its proprietary software, which will enable the nano-satellite constellation to operate autonomously – a world first.

Further software development also underway will ensure that, by the time the Pearls are ready for launch, key functionalities including the nanosatellites’ payload, orbit and fuel consumption can all be tracked.

The company has bolstered its organisational structure and operations team, now employing more than 25 staff, to support the upcoming launch.

Meanwhile, multiple binding agreements and contracts for the Pearls have been signed including deals in Indonesia and China.

The company believes its progress has put it in a great position to capitalise on a booming ‘small satellite’ market.

A recent report from US consulting firm Frost & Sullivan has found that the launch demand for small satellites will hit 11,740 by 2023, with the revenue from the sector to exceed $70 billion by the end of that decade.

“To date, the company has invested significant funding in the development of its Pearls nanosatellites and supporting launch hardware, establishing operating procedures and protocols, developing and testing the required constellation software, establishing ground infrastructure to support the Pearls operationally from first launch, and investing in internal processes and highly skilled employees to establish SAS’ operations and support the business now and into the future,” the company said in a statement.

 

 

This special report is brought to you by Sky and Space Global.

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