In a report released today, Paul Penney from Northland Securities reiterated a Sell rating on Iridium Communications (IRDM), with a price target of $14. The company’s shares opened today at $26.39, close to its 52-week high of $26.86.
“We continue to believe there is still an ample amount of investor uncertainty on what each respective satellite company can or cannot do. Said another way and through our many investor / media conversations, there appears to be a lingering confusion on the difference between L- band (IRDM) and Ka (ISAT / VSAT / SES / I). As a result and for IRDM, we believe investors are mostly caught up in the early / hype / top of the cycle stage and incorrectly grouping IRDM with other true broadband / HTS Ku satellite providers. In reality and as reaffirmed with many VAR channel check calls, we believe IRDM’s Certus “Broadband” product suite is far from innovative and will be nothing more than a back-up / low ARPU service in an increasingly shrinking L-Band marketplace.”
According to TipRanks.com, Penney is a 3-star analyst with an average return of 4.4% and a 47.5% success rate. Penney covers the Technology sector, focusing on stocks such as ImageWare Systems Inc, Boingo Wireless Inc, and Global Eagle.
Currently, the analyst consensus on Iridium Communications is a Moderate Buy with an average price target of $22.67.
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Based on Iridium Communications’ latest earnings release for the quarter ending December 31, the company reported a quarterly GAAP net loss of $7.6 million. In comparison, last year the company had a net profit of $142 million.
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Iridium Communications, Inc. is a mobile voice and data satellite communications network. Its satellite network provides communication where terrestrial wireless or wireline networks do not exist or are limited. The company’s principal lines of business include Land Mobile, Maritime, Aviation, and Government.