UrtheCast is sitting on a “massive” opportunity, says Dundee

Dundee Capital Markets analyst Eyal Ofir attended an affair hosted by UrtheCast (UrtheCast Stock Quote, Chart, News: TSX:UR) today and came away feeling especially bullish about the company’s opportunities.

This morning, at an event in New York, UrtheCast unveiled full-colour high-definition videos of Earth, filmed from the International Space Station (ISS) at roughly one-metre resolution. The company released videos of London, Boston and Barcelona on its website.

“Today, we are continuing our advancement towards democratizing the Earth observation industry, making timely Earth video and imagery from space accessible to everyone,” said CEO Scott Larson. “With the ultimate goal of connecting the planet and highlighting what unites us all, we’re revealing a perspective of Earth from space that was previously reserved for a small few. By opening up our API to the Web development community, we’re providing collaboration tools that will help people monitor, protect and benefit our world, and will lead to the democratization of Earth observation imagery.”

Ofir says the image quality of the demonstration exceeded his expectations. He thinks the company is now sitting on “massive” opportunities in selling to government (B2G)and to consumers(B2C).

“Reminder,” said Ofir. “If UR sells 2-3 videos per day they reach break-even (when removing the engineering services work they are doing). Selling 10 per day generates $100 mil in revenue and $70 mil of EBITDA (capacity is 100-150/day).” Ofir added: “…we see significant long term upside in this company just in the B2G and B2B market opportunities alone. The initiatives on the B2C side is the gravy and provides further optionality to the story.”

In a research update to clients today, Ofir maintained his “Buy” rating and one year target price of $5.00.

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