UPDATE: Canaccord Genuity Starts Orbcomm (ORBC) at Buy

January 28, 2014 8:13 AM EST
Get Alerts ORBC Hot Sheet
Price: $11.27 -0.18%

Rating Summary:
    5 Buy, 4 Hold, 1 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 15 | Down: 13 | New: 24
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(Updated - January 28, 2014 11:53 AM EST)

Canaccord Genuity initiated coverage on Orbcomm (NASDAQ: ORBC) with a Buy rating and price target of $9.00.

"We believe ORBCOMM is successfully transitioning from a satellite services provider to a leading end-to-end solutions provider for the machine to machine (“M2M”) or Internet of Things (“IOT”) market," said analyst T. Michael Walkley.

"In fact, we believe recent customer wins with Hub Group, Ryder, and Doosan not only provide ORBCOMM with roughly $80M to $100M in sales visibility over the next several years, but these deals also demonstrate ORBCOMM's strong end-to-end solutions for several leading M2M vertical markets. With ORBCOMM's planned launch of its new satellite network OG2, combined with its partnerships with Inmarsat and Globalstar, we believe the company's improved network coverage and increased network bandwidth enhance its end-to-end solutions offering and position the company to build on its M2M solutions deal momentum. While investments to grow its M2M services platforms have limited 2012 and 2013 adjusted EBITDA growth, we believe recent deal wins will result in adjusted EBITDA growth returning in 2014 with accelerating growth in 2015 and beyond," he added.

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 $6.60 yesterday.


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