Deutsche Bank Starts Globalstar (GSAT) at Hold

Deutsche Bank analyst Bernard von Gizycki initiates coverage on Globalstar (NASDAQ: GSAT) with a Hold rating and a price target of $62.00.

The analyst comments "We expand our satellite communication (satcom) coverage and initiate coverage of Globalstar with a Hold rating and $62 price target. Globalstar’s satellites are in low-Earth orbit (LEO), operating in the MSS/narrowband realm, historically competing against Inmarsat (now part of Viasat) and Iridium but in recent years, management pivoted to a wholesale capacity strategy, becoming the D2D network operator for Apple’s device ecosystem. This was the right move, in our view, given the consolidation happening in the industry and rapid emergence of Starlink. More importantly, following the Echostar + SpaceX deal, the strategic value of Globalstar’s spectrum has materially increased, leading to the stock more than doubling in the past 3 months vs. NASDAQ +3%. As such, we currently see the risk/reward profile as mostly balanced, deriving our price target based on multi-scenario probability-weighted framework. In our Space industry framework, there are 3 main types of satellites in operation: imagery (Earth Observation), communication, and radio frequency. A more simplistic way of distinguishing these is: “seeing, talking, and hearing .” Our focus in this report will naturally be on communication (satcom) which represents satellites enabling voice, text, and data connectivity on the ground from space, mostly targeting underserved areas where a wired or cellular network is not present. Common examples are over the ocean or rural land areas; governments are also large customers. Furthermore, there has been a growing movement to connect personal consumer devices directly to satellites without using incremental hardware (dish antenna), referred to as direct-to-device (D2D)."

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

Shares of Globalstar closed at $69.05 yesterday.

You May Also Be Interested In

• Bernstein SocGen Group Starts Terawulf Inc. (WULF) at Outperform
• Goldman Sachs Upgrades Plains GP Holdings, L.P (PAGP) to Neutral
• JPMorgan Starts Arashi Vision Inc (688775:CH) at Neutral