Sidus Space (SIDU) Stock Soars 30% on Teledyne Deal

  • Shares of space-as-a-service satellite firm Sidus Space (SIDU) are up massively in late morning trading.
  • Sidus announced today that it extended its relationship with Teledyne Marine, an arm of Teledyne Technologies (TDY).
  • SIDU stock is rising amid a possible resurgence of relevance for the space economy.
SIDU stock - Sidus Space (SIDU) Stock Soars 30% on Teledyne Deal

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The space sector has been exceptionally profitable for Sidus Space (NASDAQ:SIDU), a satellite company featuring multiple hardware and design engineering solutions. Earlier today, Sidus explained the success of its business relationship with Teledyne Technologies’ (NYSE:TDY) arm Teledyne Marine, thus sparking further expansion of the partnership. In response, SIDU stock soared 30% in late morning trading.

Officially billed as a space-as-a-service satellite firm, the Florida-based Sidus operates out of a 35,000-square-foot manufacturing, assembling, integration and testing facility, providing vertically integrated solutions for end-to-end satellite support. In July 2019, Sidus signed its first two-year master supply agreement with Teledyne Marine and initiated a two-year product pricing agreement in September 2021.

Thanks to the successful partnership, Sidus will now manufacture components for Teledyne Marine’s Massachusetts facility and will continue supplying components to Teledyne Marine’s facilities in Texas and Florida, per its press release.

“We’ve been fortunate to build components for Teledyne Marine since 2019, and we’re excited to see our relationship grow and prosper,” stated Carol Craig, CEO and founder. “Teledyne Marine’s increased trust in Sidus is a testament to the quality of products we develop and the value we provide to our partners. We look forward to working together in the years to come.”

SIDU Stock and the Optimism of the Space Economy

Considering the insignificant footprint that Earth imparts on the greater universe, it’s only natural that business enterprises – once technologies and economies of scale allow for it – would seek to expand into and leverage the final frontier. Increasingly, analysts are weighing in on the matter, potentially boding well for SIDU stock.

In May of this year, CNBC reported Citigroup expects the space economy to hit $1 trillion in annual revenue by 2040. Sparking such a pivotal framework is the launching cost, which the banking giant expects will drop 95%.

Indeed, as costs decline, the ability to access space more efficiently “would create more opportunities for technological expansion and innovation, unlocking more services from orbit such as satellite broadband and manufacturing,” per CNBCs description of Citi’s analysis. Specific to SIDU stock, Citi also added that “Revenue from manufacturing, launch services and ground equipment will make up the majority of the revenue growth in the satellite sector.”

As well, financial backers are eyeing the space economy, another potential catalyst for SIDU stock. In 2021, Space Capital reported space infrastructure companies received $14.5 billion of private investment.

Why It Matters

Although the idea of the space economy conjures up fantastical images of starfighters and other science-fiction elements, the reality is the burgeoning sector is incredibly practical. For instance, Planet Labs (NYSE:PL) offers satellite-imaging services, which outlets such as the New York Times used to monitor North Korea’s weapons programs and illicit shipments of oil.

This is not to suggest SIDU stock is bulletproof, because it’s not. Despite today’s incredible move higher, on a year-to-date basis, shares are down about 64%. Nevertheless, speculators with a long-term outlook may decide to give Sidus another look as relevancies in the space economy rise.

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On the date of publication, Josh Enomoto did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the Publishing Guidelines.

A former senior business analyst for Sony Electronics, Josh Enomoto has helped broker major contracts with Fortune Global 500 companies. Over the past several years, he has delivered unique, critical insights for the investment markets, as well as various other industries including legal, construction management, and healthcare.

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