YSS Stock Sinks To Record Low: Jefferies Slashes Price Target By 60%, Sees ‘Materially Longer Path To Positive EBITDA’

• Craig-Hallum lowered its price target on YSS stock to $7 from $11, and kept a ‘Hold’ rating.
• York reported a 7% decline in Q3 revenue and missed Wall Street’s $90 million forecast.
• The company narrowed its FY2026 revenue outlook to $380 million to $400 million from $375 million to $405 million.

Shares of York Space Systems (YSS) slumped more than 13% to an all-time low on Friday, while Wall Street weighed the implications of rising expenses and delayed contracts after the company narrowed its full-year 2026 revenue outlook.

According to TheFly, Jefferies downgraded the stock to ‘Hold’ from ‘Buy’ and slashed its price target to $6 from $15, citing rising operating expenses and limited new order intake. The brokerage said these factors suggest a “materially longer path” to positive earnings before interest, taxes, depreciation and amortization (EBITDA).

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Craig-Hallum analyst Jeff Van Rhee also lowered his price target to $7 from $11, and maintained a ‘Hold’ rating. Craig-Hallum said topline estimates may need to be lowered further, due to declining revenue from Proliferated Warfighter Space Architecture (PWSA), a multibillion-dollar satellite-based U.S. military program.

York Space Narrows FY2026 Revenue Guidance

On Thursday, York reported a 7% decline in third-quarter (Q3) revenue to $84.2 million, missing Wall Street’s $90 million forecast, according to Fiscal.ai. The decline was primarily driven by lower revenue from its Space Development Agency Tranche 1 satellite program.

During the quarter, the company recorded a non-cash goodwill impairment charge of $749.7 million. Backlog fell slightly to $581 million.

This led York to narrow its FY2026 revenue outlook to $380 million to $400 million from $375 million to $405 million.

York To Acquire Outlook Industries

On Tuesday, York announced plans to acquire Outlook Industries, expanding into military unmanned ground systems. The company did not disclose the deal’s consideration but said the acquisition could open access to a $3.08 billion unmanned ground systems market.

Separately, York made Brian Frantz its permanent chief financial officer after he served in the interim role since August.

Retail Expects YSS To Fall Below $5

Retail sentiment surrounding YSS on Stocktwits changed to ‘neutral’ from ‘bullish’ over the past 24 hours, amid ‘high’ message volumes.

One user expects the stock to fall below $5. It is currently trading around $5.8.

YSS shares have seen heavy selling pressure so far this year, plummeting around 82%.

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