Firefly Aerospace Skyrockets 30% on $1.3 Billion Deal With AST SpaceMobile

Firefly Aerospace (FLY) stock ripped higher on Friday after the space and defense company signed a deal worth more than $1.3 billion with AST SpaceMobile (ASTS). Under the three-year agreement, FLY will deliver 36 rocket engines, license related engine IP, and provide engineering support for AST’s planned Blacklift launch vehicle. 

The announcement brings a much-needed reprieve to Firefly shares, which are still down roughly 65% versus their year-to-date high in late May. 

What AST Agreement Means for Firefly Stock

The agreement gives AST SpaceMobile access to Firefly’s propulsion technology as it pushes deeper into launch capabilities. 

For FLY shares, the deal is significant as it brings in fresh capital that management plans to use to accelerate launch vehicle production and advance the firm’s broader technology roadmap. The contract also validates Firefly’s propulsion expertise, turning one of its core technologies into a potentially lucrative licensing and manufacturing business.

With recurring deliveries spread over multiple years, the agreement improves revenue visibility and strengthens FLY’s position within the rapidly expanding commercial space sector.

Is It Already Too Late to Invest in FLY Shares?

The AST SpaceMobile contract represents more than a one-time order. It establishes Firefly as a critical propulsion partner in a major next-gen launch program and creates an additional path for monetizing its engine technology. 

Plus, demand for launch services, national security space programs, satellite deployment, and lunar missions continues to accelerate, making Firefly stock even more attractive as a long-term holding.

Crucially, the Nasdaq-listed firm is currently trading at a price-to-sales (P/S) ratio of about 17x, which makes it much less expensive to own than rival Rocket Lab. 

Note that FLY rallied past its 20-day moving average (MA) today, indicating bulls have taken back control in the near term. 

Wall Street Remains Bullish on Firefly Aerospace

A dovish technical setup is not at all reason enough for Wall Street analysts to throw in the towel on FLY stock, though. 

According to Barchart, the consensus rating on Firefly Aerospace remains at “Strong Buy,” with the mean price target of about $102 indicating over 5x potential from current levels. 

On the date of publication, Wajeeh Khan did not directly have a position in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.