{"id":1520034,"date":"2025-02-18T23:50:00","date_gmt":"2025-02-19T04:50:00","guid":{"rendered":"https:\/\/bugaluu.com\/news\/?p=1520034"},"modified":"2025-02-18T23:50:00","modified_gmt":"2025-02-19T04:50:00","slug":"goldman-turns-bullish-on-starlink-satellite-parts-supplier-as-space-race-accelerates","status":"publish","type":"post","link":"https:\/\/bugaluu.com\/news\/goldman-turns-bullish-on-starlink-satellite-parts-supplier-as-space-race-accelerates\/1520034\/","title":{"rendered":"Goldman Turns Bullish On Starlink Satellite Parts Supplier As Space Race Accelerates"},"content":{"rendered":"

Goldman Turns Bullish On Starlink Satellite Parts Supplier As Space Race Accelerates <\/span><\/p>\n

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The space race to connect the world<\/strong> to the internet is led by Elon Musk’s SpaceX’s Starlink<\/a>,\u00a0alongside competitors like OneWeb, Amazon, and Telesat. These players are deploying massive\u00a0constellations of low Earth orbit (LEO) satellites<\/strong>, with plans to launch tens of thousands of new units by the\u00a0decade’s end, with some 7,000 LEO\u00a0satellites already orbiting the planet every 90 minutes.\u00a0<\/p>\n

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With tens of thousands of new LEO\u00a0satellites\u00a0slated for deployment over the next five years, Goldman analysts have identified the global leader in satellite components<\/strong>\u2014particularly hollow metallic waveguides. These waveguides are used in microwave or mmWave components, such as power amplifiers, filters, circulators, and isolators. Such components are integral to both LEO satellites and ground-based gateways used by Starlink and Amazon<\/strong>, which transmit data skyward to be relayed around the globe.<\/p>\n

<\/a><\/p>\n

Goldman’s\u00a0Allen Chang,\u00a0Verena Jeng, and others<\/em> informed clients Monday that they initiated a “Buy” on\u00a0Universal Microwave Technology (UMT)<\/strong> because of its\u00a0unique exposures to the mmWave\/ microWave components for LEO\u00a0satellites as launch plans for these\u00a0satellites are accelerated.\u00a0<\/p>\n

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Chang and the team provided clients with additional insight into UMT’s current position as a global leader in LEO satellite components for mmWave\/ microWave components: <\/strong><\/p>\n

We expect LEO satellites to be a standard service in the <\/em>6G era starting in 2030<\/em><\/strong>, driving network deployment to grow at 49% CAGR in 2025-27E. Major <\/em>global satellite operators target to launch an additional 80k units (vs. 7k in the sky currently) in the coming 5 years<\/em><\/strong>. <\/em><\/p>\n

The <\/em>acceleration of LEO satellite launches will drive UMT’s revenues<\/em><\/strong>: we expect UMT’s LEO satellite revenues to grow at 40% CAGR in 2024-28E to NT$9bn in 2028E or 77% of total revenues. LEO satellites carry higher GM than UMT’s traditional telecom products, driving the blended GM to 55.5% in 2028E (vs. 51.3% in 2024E).<\/em><\/p>\n

The analysts expect an accelerated ramp-up of satellite network deployment, such as\u00a0Starlink’s\u00a0Direct to Cell connection<\/strong>, and other companies deploying LEO\u00a0satellites to greatly benefit UMT.<\/p>\n

UMT’s projected revenues:<\/strong><\/p>\n

<\/a><\/p>\n

The company\u00a0is poised to maintain a leading role for years to come, as analysts noted, due to “barriers to entry of satellite microwave components.”\u00a0<\/strong><\/p>\n

Here’s more color:\u00a0<\/p>\n

Unlike smartphones\/ consumer electronics RF (radio frequency), satellites use microwave\/ mmWave with higher frequency and a <\/em>more complicated<\/em><\/strong> structure with high-precision processing, which is difficult for consumer-grade supply chain players to enter.<\/em><\/p>\n

Their 12-month price target is around NT$591 (implying a 51% upside) based on 25x 2027E discounted P\/E.\u00a0<\/p>\n

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UMT shares trading in Taiwan…<\/p>\n

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In a separate note, the analysts provided clients with a broader overview of companies entering LEO supply chains.<\/p>\n

<\/a><\/p>\n

What comes after the AI bubble? Potentially, it’s the space bubble.\u00a0<\/em><\/p>\n<\/div>\n

Tyler Durden<\/a><\/span>
\nTue, 02\/18\/2025 – 18:50<\/span><\/p>\n

\u200bhttps:\/\/www.zerohedge.com\/technology\/goldman-turns-bullish-starlink-satellite-parts-supplier-space-race-accelerates<\/a>\u00a0<\/p>\n","protected":false},"excerpt":{"rendered":"

Goldman Turns Bullish On Starlink Satellite Parts Supplier As Space Race Accelerates The space race to connect the world to the internet is led by…<\/p>\n","protected":false},"author":0,"featured_media":1520035,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-1520034","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","wpcat-1-id"],"_links":{"self":[{"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/posts\/1520034","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/comments?post=1520034"}],"version-history":[{"count":0,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/posts\/1520034\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/media\/1520035"}],"wp:attachment":[{"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/media?parent=1520034"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/categories?post=1520034"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/tags?post=1520034"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}