Seraphim reaches for the stars with 31% year-to-date gains
Shares in Seraphim Space Investment Trust (SSIT) have nearly doubled from a low of 29p last November but are still a long way off their initial public offering (IPO) price of 100p.
The trust’s share price has been volatile post-pandemic as investors ‘fell out of love’ with blue-sky stocks like Seraphim, which made its stock market debut in the summer of 2021, but over the past three months interest in space tech has been reignited.
Analysts at Stifel believe the company’s underlying performance is healthy with ‘significant growth potential over the long term helped by tailwinds related to increased defence and climate change prevention spending’.
Coupled with this is record investment in the space tech sector – the last quarter of 2023 saw $2.2 billion invested across 128 deals.
Seraphim is ‘on the up’, says Maureen Haverty, a Seraphim principal investor. ‘Space tech is bucking trends with sustained levels of high investment. Renewed investment focus from governments around the world, a burgeoning private equity market and a surge in M&A (merger and acquisition) activity means 2024 is on track for a strong year of investment.’
Disclaimer: The author (Sabuhi Gard) owns shares in Seraphim Space Investment Trust.
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