Barclays Upgrades Iridium Communications (IRDM) to Overweight, 'Solid quarter, attractive outlook

Barclays analyst Mathieu Robilliard upgraded Iridium Communications (NASDAQ: IRDM) from Equalweight to Overweight with a price target of $65.00 (from $66.00).

The analyst comments "In our recent report To Infinity and Beyond – Volume 3 (21 July 2023) we assessed the revenue opportunity of the Direct to Device (‘D2D’) service which we believe is material. Iridium has signed a deal with Qualcomm (covered by Blayne Curtis) on 5 January 2023 under which Qualcomm will incorporate the Iridium frequencies into its upcoming chips that are used in Android Smartphones (more than 75% of smartphones). We believe this will represent a strong source of revenues for Iridium, but will be gradual (c. $90m by 2027). Our view is in line with management comment, but considering the stock price correction on the day of the results, expectations were likely more bullish. After this reset we now see an attractive risk/reward and upgrade Iridium to Overweight."

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

Shares of Iridium Communications closed at $50.96 yesterday.

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