HawkEye 360 (HAWK) is positioned for strong multi-year growth supported by its differentiated space-based signals intelligence platform and expanding government and allied-nation demand, Morgan Stanley said in its initiation report on Monday.

The researchers highlighted HawkEye as a unique provider of unclassified radio frequency data at scale, enabled by a constellation of 30-plus satellites supporting applications across defense, maritime monitoring, and communications intelligence.

Morgan Stanley said HawkEye's competitive edge stems from its proprietary emitter database and signal-processing capabilities, enabling reuse of radio frequency data across customers in a "one-to-many" model with strong operating leverage and high margins.

The report projected around a 41% revenue compound annual growth rate through 2028, driven by new customer wins, international expansion, and new use cases, with HawkEye already EBITDA-positive and expected to generate sustained free cash flow from 2027 as scale increases and capital intensity declines.

The next-generation "Block 3" satellites, which are expected to lower unit build costs and improve coverage efficiency, further enhance long-term margin expansion potential, the report added.

Morgan Stanley initiated coverage with an overweight rating on the stock and a price target of $41.

Shares of HawkEye 360 were up 0.5% in Monday trading.

Price: 32.81, Change: -0.20, Percent Change: -0.62