BlackSky Technology (BKSY) surges 11.04% after Jefferies initiates buy rating with $23 target.

BlackSky Technology (NYSE: BKSY) surged 11.04% in pre-market trading on January 5, 2026, following a major analyst rating upgrade. The sharp move came after investment bank Jefferies initiated coverage with a "buy" recommendation and a $23 price target, which the stock briefly hit within 10 minutes of the announcement.

Jefferies highlighted BlackSky’s accelerated satellite deployment progress, noting the company’s third Gen-3 satellite became operational just three weeks after launch, generating immediate revenue. The firm projected annual revenue growth of 25% through 2028, potentially doubling sales to $211 million, driven by the expanded satellite constellation.

While the stock’s rapid response to the rating suggests strong institutional confidence, analysts caution that achieving Jefferies’ optimistic revenue forecasts—up to $400 million with 65%+ EBITDA margins—may require further validation of the company’s operational scalability. The pre-market rally reflects a strategic inflection point for BlackSky’s satellite-as-a-service model.

Investors are now closely watching whether the company can scale its infrastructure without overextending its balance sheet. Management has not provided a detailed capital plan, but recent press releases suggest the firm is in advanced negotiations for two new satellite launches, expected to go online in the first quarter of 2026.

Regardless of the outcome, the Jefferies upgrade has already marked a psychological turning point for the stock, drawing in both short-term momentum traders and long-term investors betting on the future of space-based commercial services.