This analyst just raised his price target on Maritime Launch Services

Beacon Securities analyst Russell Stanley says Maritime Launch Services’ (Maritime Launch Services Stock Quote, Chart, News, Analysts, Financials CSE:MAXQ) agreement with Isar Aerospace improves revenue visibility and validates the company’s Spaceport Nova Scotia thesis.

In a July 7 update, Stanley maintained his “Buy” rating on Maritime and raised his target to $1.50 from $1.25.

Maritime announced Isar as its second customer, following its Department of National Defence contract in March. Isar will develop a dedicated launch complex at Spaceport Nova Scotia for its Spectrum launch vehicle.

Stanley said the 10-year agreement could eventually generate more than $31-million in annual revenue. Isar will make quarterly payments of US$3.75-million, or about $21-million annually, excluding a 30-month fee waiver period beginning after the first year. Maritime will also receive per-launch fees on a cost-plus basis, with Isar potentially reaching 40 launches annually by 2029.

The launch pad buildout is expected to begin this year, with first orbital launches targeted for 2028. The agreement is conditional on a final statement of work and milestones by Sept. 1, handover of the launch pad by Nov. 1 and completion of additional infrastructure by the end of fiscal 2027.

Isar is a German launch vehicle developer backed by investors including Porsche SE and Airbus Ventures. Stanley said the company recently completed a $400-million equity financing to support production capacity of up to 40 launch vehicles annually.

“Though Isar already has access to a launch site in Norway, that country shares a border with Russia, and at least as importantly, its northern location limits the range of orbital inclinations it can support relative to what MAXQ can offer,” Stanley said.

Stanley said the agreement also has a connection to Canada’s submarine procurement process. German bidder TKMS was selected as the preferred bidder for the Canadian Patrol Submarine Project, and had previously announced an agreement with Isar to help develop a Canadian space launch capability.

“There is so much to like,” Stanley said. “Importantly, Maritime now has a second customer under contract, following the DND win in March.”

He said the deal brings Maritime’s annual revenue run-rate above $40-million and adds urgency for other potential tenants to secure launch pads. Phase 1 of the site contemplates four pads.

Stanley also said the agreement adds a European customer and demonstrates the international appeal of the Nova Scotia site.

The analyst raised his valuation multiple to 10 times 2028 Adjusted EBITDA from 8.5 times, citing improved revenue visibility and validation of his thesis.

Stanley expects Maritime to generate Adjusted EBITDA of $7-million on revenue of $22-million in fiscal 2026, rising to Adjusted EBITDA of $39-million on revenue of $73-million in fiscal 2027.

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