Voyager Technologies rated Buy in new research coverage by Bank of America

Bank of America Securities on Monday initiated coverage of Voyager Technologies (NYSE:VOYG) with a Buy rating, highlighting the defense tech company’s exposure to national security programs and its potential role in the growing space economy.

Its portfolio includes advanced guidance, navigation, and control systems, as well as participation in critical defense and space initiatives, BofA analyst Ronald Epstein said in a July 7 research note.

Voyager (NYSE:VOYG) offers exposure to “critical and well supported national security and space programs, and upside opportunities presented by Starlab and M&A,” he said. Starlab is a planned low-Earth-orbit commercial space station being by designed by Starlab Space, a join venture between Voyager (VOYG) and Airbus (OTCPK:EADSF) (OTCPK:EADSY).

Growth drivers in defense

A key growth driver for Voyager (VOYG) is its involvement in the Next Generation Interceptor (NGI) missile defense program. Epstein said the company’s content on NGI is “a meaningful driver of company growth” and also expands its potential to secure work on other major programs.

He added, “VOYG’s initial strategy – gaining on key programs via M&A – remains viable,” and success with NGI could position the company to supply related missile systems, including “SM-3, THAAD, PAC-3 and others poised for significant investment.”

Voyager (VOYG) is also positioned to benefit from emerging space sector opportunities, particularly through its role in the Golden Dome national security architecture. Epstein explained, “Golden Dome’s unified architecture drives growing demand for suppliers of key hardware and software capabilities like Voyager’s (VOYG).”

On legacy platforms, the company already supplies communications, guidance and ISR (intelligence, surveillance, reconnaissance) systems for space missions involving Earth observation and threat detection. Looking ahead, Epstein pointed to Voyager’s (VOYG) partnerships with Palantir (PLTR) and Nvidia (NVDA) as a way to “bridge cutting-edge capabilities for national security through programs like TALIX.”

A potential game-changer for Voyager (VOYG) is its leadership role in the Starlab commercial space station initiative, one of several projects aiming to fill the gap when the International Space Station is retired at the end of the decade.

“We see the Voyager-led Starlab commercial space station as attractive, though the program remains in the early innings,” Epstein wrote, adding that Voyager’s (VOYG) “strong team positions the project as a leading candidate to replace the International Space Station.”

He also flagged potential revenue streams from “emerging market opportunities including microgravity research and manufacturing,” forecasting that the joint venture could generate “$3 billion-plus in revenues by 2032.”

Investment risks include ownership structure

However, Epstein cautioned that investment in Voyager (VOYG) carries risks including profitability, governance and market volatility.

“While Voyager’s (VOYG) capabilities and end market exposure are attractive, investment in Voyager (VOYG) remains relatively risky,” he said, noting that the company lags defense tech peers on profitability and that adjusted earnings before interest, taxes, depreciation and amortization are to remain negative through 2028.

The company’s ownership structure also presents potential concerns, with approximately 63% of voting power held by the founder.

“The company’s structure… is atypical and introduces governance risks,” Epstein wrote.

Despite these challenges, Epstein sees Voyager as well positioned in the high-growth defense tech space, concluding that “SMID Cap defense tech names remain highly sought after across investor classes, [but] trading is volatile.”

BofA set a price objective of $50 for Voyager (VOYG), implying notable upside for investors. The firm’s valuation is based on a 14 times enterprise value-to-sales multiple on 2026 estimates, which Epstein noted is “slightly higher than defense tech peers” but justified given Voyager’s (VOYG) portfolio.

Shares of Voyager (VOYG), which went public last month, fell 2.9% to $41.12 a share as of 9:40 a.m. ET.