BlackSky Technology (BKSY) shares rise 13.61% pre-market as Jefferies initiates coverage with Buy rating and $23 price target

Shares of BlackSky Technology (BKSY) rose 13.6104% in pre-market trading on Dec. 23, 2025, following a bullish Jefferies report that initiated coverage with a "Buy" rating and a $23 price target.

The analyst highlighted BlackSky’s Gen-3 satellite constellation, which offers 35cm resolution and high-frequency monitoring capabilities, positioning the firm to capitalize on growing demand for real-time geospatial intelligence in defense and sovereign markets. Jefferies noted the company’s $323 million contract backlog, 91% of which is international, and projected revenue growth to accelerate from 6% in 2025 to 24% in 2026.

Investors are reacting to BlackSky’s transition from speculative space ventures to a high-margin SaaS model, with incremental margins on new contracts exceeding 65%. The report emphasized the firm’s potential to generate positive free cash flow by 2028 and its strategic alignment with the "Sovereign Space" trend, where nations seek independent orbital capabilities.

The surge reflects renewed institutional interest in space-tech firms with tangible assets and long-term government contracts. BlackSky’s rapid deployment of Gen-3 satellites and its focus on AI-driven data analysis—enabling automated insights for defense and intelligence clients—have solidified its appeal in a maturing sector. Analysts caution, however, that execution risks such as launch delays could impact long-term momentum.