Overview
SATX stock has declined steeply from its 2021 highs, but some see a potential turnaround on the horizon. However, risks remain for the satellite communications firm.
Current Trading Level and Trend
Trading at $0.29 at the time of writing, SATX stock has crashed from its 52-week high of $79.21. It now trades 96% below its 2021 peak.
Technically, SATX recently bounced off its 52-week low of $0.28. While it is trading above its 50-day moving average, it remains below its 200-day line. This signals an ongoing downtrend despite some positive momentum.
Business Model and Industry Positioning
Fundamentally, SATX is making progress on next-generation satellite tech and has marquee customers. However, it remains a pre-revenue firm and dilution is a concern. SATX recently approved a reverse stock split to maintain its Nasdaq listing.
While SATX could rally on anticipated launches or partnerships, it faces risks typical of speculative tech stocks. Competition is also heating up in the satellite communications industry.
Conclusion and Price Target
Given the potential downside risk, I would avoid SATX stock for now. The stock appears overvalued compared to its early stage fundamentals.
My 12-month price target for SATX stock is $0.50, representing potential downside of around 40% from current levels. Only very risk-tolerant investors should consider SATX at present valuations.
