By Sam Boughedda
Terran Orbital Corp (NYSE:LLAP) shares surged Wednesday on the announcement that it has won a $2.4 billion contract to build 30 satellites for Rivada Space Networks.
Terran Orbital shares are currently up more than 80% on the news, at around $3.09 per share, after earlier hitting a high of $3.45.
The deal with Rivada is for Terran's wholly-owned subsidiary, Tyvak Nano-Satellite Systems, to design, build, and deploy 288 low-earth orbit satellites. The contract will also see Terran Orbital develop 12 spare satellites to produce 300 spacecraft.
Tyvak will act as the prime contractor to design and manufacture the approximately 500 kg satellites. They will also be responsible for developing portions of the ground segment.
Reacting to the news, BofA analysts, who have a Buy rating and $7 price target on Terran shares, told investors in a research note that the award "further solidifies Terran Orbital as a top-choice satellite producer."
"Further, we see this contract as an opportunity for Terran Orbital to continue to expand across all satellite service and operation verticals. Not only is Terran Orbital responsible for design and manufacturing, payload integration, and final assembly and testing, the company is also tasked with developing portions of the ground segments and mission operations for the in-orbit satellites," wrote the analysts.