UPDATE: Macquarie Starts ORBCOMM (ORBC) at Outperform

October 31, 2016 8:56 AM EDT
Get Alerts ORBC Hot Sheet
Price: $8.19 -0.12%

Rating Summary:
    8 Buy, 0 Hold, 0 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 30 | Down: 30 | New: 23
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(Updated - October 31, 2016 10:51 AM EDT)

Macquarie initiated coverage on ORBCOMM (NASDAQ: ORBC) with an Outperform rating. Analyst Andrew DeGasperi sees the stock as a compelling investment.

"ORBCOMM makes a compelling investment case for shareholders interested in companies that will monetize the coming Internet of Things wave, a US$30bn market opportunity. After several acquisitions that have opened several new verticals and new partnerships/organic efforts to strengthen its network, we believe ORBCOMM’s sub growth will accelerate in the near term and drive top-line CAGR of 9% through ‘18. We value ORBC at US$11/sh or 15x 2017E EBITDA," said DeGasperi.

"Importantly, while shares are relatively in line with peers at ~12x 2017E EBITDA, we think its dominant position in satellite-based M2M, unique satellite/terrestrial hybrid network, high visibility to revenues thanks to extensive subscriber base and appetite for M&A will likely propel shares higher. Lastly, we note our rating is not a call on 3Q16 results," added the analyst.

For an analyst ratings summary and ratings history on ORBCOMM click here. For more ratings news on ORBCOMM click here.

Shares of ORBCOMM closed at $8.76 yesterday.

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