Analysts Blast Maxar Technologies After Restructuring News

The satellite operator also reported weak quarterly results and a dividend cut

The shares of Maxar Technologies Inc (NYSE:MAXR) are down 23.4% at $5.60, after the space technology firm said it was cutting 4% of its workforce -- more than 200 positions -- as part of a broader restructuring plan. The company also reported weak fourth-quarter results, lowered itsdividend payment, and said it's restructuring its geostationary orbit satellite business.

Analyst reaction has been swift, with CIBC downgrading the stock to "underperform" from "neutral," and lowering its price target to $5 from $6. MAXR's price target was also dropped at Raymond James (to $20) and Canaccord Genuity (to $8), with the latter brokerage firm noting, "Those thinking that this strategic review could potentially provide some relief for the company's highly levered balance sheet will likely be disappointed," and that it's "challenging to recommend the stock" "at the moment.

More broadly speaking, the majority of the five covering brokerage firms are skeptical of the equity, though two still maintain a "buy" or better rating. However, the average 12-month price target of $12.19 is a stiff premium to current trading levels, suggesting more price-target cuts could come down the pike.

And while short sellers are sidelined today with MAXR on the short-sale restricted list, they've been in the drivers seat on a stock that was already down 39% year-to-date heading into today's trading. Short interest jumped 19.1% in the two most recent reporting periods to 6.2 million shares, representing 10.7% of the stock's available float.