Highlights in small-caps: space is on trend, Ozempic for hair, the failure of Intuitive Machines
Redwire shares have added more than 200% since the beginning of the year, their value is now 40% above the average target from Wall Street analysts / Photo: X / Redwire
The upcoming IPO of Elon Musk's SpaceX stimulates the growth of the space industry and the rally of related companies. Against this background, shares of Intuitive Machines fell in price - it was not included in the list of NASA to send robotics to the moon as part of the accelerated creation of the U.S. lunar base. Quotes of biotech Absci jumped at the auction on Ma. 28: its drug against baldness may become a blockbuster like Ozempic and Wegovy. The main small-caps news from Ma. 25 to 29 are in our review.
Redwire's stock soars
Shares of Redwire, a small-cap spacecraft manufacturer and developer of infrastructure solutions for Mars, rose 40% last week, continuing a rally that began last week. The company has a contract with the European Space Agency to develop a prototype robotic arm for the lunar module, which will allow it to unload cargo onto the moon.
The quotes were supported by a series of positive news: first quarter revenue growth of 58% year-on-year to $97 million, a record order book of $498.1 million, and new contracts for unmanned systems - including an eight-figure deal with an unnamed NATO ally and an additional order from the U.S. Army.
Eight Wall Street analysts have rated Redwire securities with a buy rating, one has issued a hold rating and one has assigned a sell rating to the stock. The average target is $14.4 - 40% less than the current share price. Analyst Aldiyar Anuarbekov in an article for Oninvest also included Redwire in the top 5 small-cap companies to invest in before the SpaceX IPO.
What else is there to read about space?
- Shares of space companies rose sharply after the official filing of SpaceX application for IPO on May 20. Whose quotes reacted more strongly than others - in the article "SpaceX IPO application launched a rally in space stocks. How to capitalize on it".
Biotech's drug Absci could become the "GPL-1" against baldness
Quotes of biotech Absci Corporation jumped nearly 18% in trading on Thursday, Ma. 28 and continued to rise the next day - another 11%. BTIG analyst Kambiz Yazdi wrote that Absci's anti-obesity drug could replicate the success of Ozempic and Wegovy in the diabetes and weight loss market. In addition, the company plans to study the drug's use in endometriosis.
BTIG estimates that peak sales of the drug could reach $2.2 billion. "ABS-201 represents a rare and promising asset for two large-scale markets at once, where effective solutions are still lacking," Kambiz Yazdi wrote in the report. Hair loss affects about 80 million Americans, with the last time the FDA approved a new baldness drug nearly 30 years ago, BTIG notes.
Shares of space micro-cap Astrotech soared 460%
Micro-cap Astrotech Corporation, once the first in history to offer investors an investment in space commercialization and now developing systems to detect drugs and harmful substances in the workplace, has announced a new strategy to build autonomous industrial infrastructure on the moon. Astrotech shares rose 459% to $13.8 on the Nasdaq on May 27, a three-year high.
The infrastructure will enable future production of semiconductors and quantum computers on the Moon. The initiative could also be useful for NASA's Artemis lunar exploration and lunar payload delivery programs, as well as for the development of next-generation commercial lunar transportation systems, Astrotech noted.
NASA won't take Intuitive Machines to the moon
Spacecraft manufacturer Intuitive Machines has not made it to the list of the U.S. aerospace agency to send robotic landing vehicles, rovers and drones to the Moon as part of the accelerated creation of the U.S. lunar base, Bloomberg reports. The company's shares fell almost 9% in trading on May 26 after rising 16% during the day.
In contrast, shares of another NASA contractor, Firefly Aerospace, rose 18.8% on Tuesday. The company's Elytra spacecraft will deliver the first drones to the Moon to survey potential landing sites and the location of a future base.
What analysts advise: renewable energy is a favorite
- Investors should pay attention to the securities of CleanSpark and Plug Power, which work in the field of renewable energy, says Motley Fool analyst Leo Sun. CleanSpark is building data centers that run on its microgrids, addressing the environmental impact of AI, while Plug Power is developing fuel systems for hydrogen storage. Both securities have significant long-term growth potential on the back of decarbonization initiatives, the analyst says.
- Motley Fool analyst Thomas Neal advises "staying away" from shares of mid-cap biotech Viking Therapeutics. The company is still researching its obesity drugs, while its more established competitors have already made progress. Wall Street doesn't share Neal's pessimism. Viking securities have 17 "buy" recommendations from analysts, two "hold" recommendations and none "sell" recommendations.
- Motley Fool freelance analyst Prosper Junior Bacchini does not recommend investing in the securities of Tilray Brands, a Canadian cannabis producer and marketer. The reason is the company's unstable financial results. Even the easing of regulation in the U.S. cannabis market will not help - says the expert. Wall Street is also cautious in its assessment of Tilray: seven analysts recommend holding its shares and five recommend buying.
