TLDR
- Goldman Sachs slashed its price target on YSS by 50%, from $28 to $14, while maintaining a Neutral rating.
- York Space Systems cut its 2026 revenue guidance midpoint by 32%, from $570 million to $390 million.
- Supply chain issues and delayed contract awards were blamed for the guidance reduction.
- YSS stock was down 4.3% at $9.36 in early Tuesday trading, off 51% over the past month.
- The average analyst price target has dropped to $19.50 from $33 at the start of August.
York Space Systems (YSS) stock dropped 4.3% to $9.36 in early Tuesday trading after Goldman Sachs cut its price target in half, from $28 to $14.
Goldman maintained its Neutral rating on the stock. The broker cited the company’s recent revenue guidance cut and growing competition in the space sector as key reasons behind the target reduction.
The guidance cut came on August 13, when York reported second-quarter results. Management lowered its 2026 sales outlook to a range of $375 million to $405 million. The midpoint of $390 million is down 32% from a prior midpoint of $570 million.
York blamed supply chain constraints and delayed contract awards for the reduction. Investors have not taken it well.
The stock is now down 51% over the past month. For context, YSS went public in a January IPO priced at $34 per share.
Analyst Sentiment Shifts
The analyst community has turned more cautious. At the start of August, 70% of analysts covering YSS rated it a Buy. That number has since dropped to 50%, according to FactSet.
The average price target has also fallen sharply, from $33 at the start of the month to $19.50 now. Goldman’s revised $14 target sits well below that average.
The new average target values York at roughly 4 times estimated 2027 sales. That valuation multiple is largely unchanged since the guidance cut. What has changed is the sales estimate itself, which has been revised down to around $500 million from a recent $850 million.
Contract Win Fails to Lift Stock
The Tuesday drop came despite some positive news on the business side. York was selected to participate in the U.S. Space Force’s Space Data Network Backbone program.
The program is designed to ensure reliable space-based communications for the military. York will manufacture satellites and satellite hardware for it.
But the contract win was not enough to offset investor concern over the guidance cut and Goldman’s price target reduction.
York makes satellites and space systems for commercial and defense applications. Goldman noted that while York has a large defense pipeline and growing commercial opportunity, intensifying competition remains a headwind.
The S&P 500 was up 0.2% during early Tuesday trading, making YSS’s decline stand out further.
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