Firefly Aerospace’s Strategic Acquisition and Stock Valuation Debate
Firefly Aerospace, the builder of the Alfa rocket and the second American company to land on the moon in 50 years, has sparked Wall Street's attention with its recent acquisition of defense contractor SciTec. The deal, valued at $855 million, includes a $300 million cash component and 11.1 million Firefly shares priced at $50 each—a premium to its current trading range of $26-$28.
Analysts remain divided on Firefly's valuation. Cantor Fitzgerald projects a $65 price target within a year, while other firms suggest $40. The SciTec acquisition introduces a curious disconnect: Firefly convinces sellers to accept its stock at $50/share while public markets price it nearly 45% lower. This discrepancy highlights the subjective nature of equity valuation, particularly for space industry disruptors.
