In a report released today, Simon Flannery from Morgan Stanley maintained a Hold rating on Globalstar (GSAT – Research Report), with a price target of $25.00.
Simon Flannery has given his Hold rating due to a combination of factors related to Globalstar’s recent developments and future prospects. The company’s significant contract with MDA Space, valued at approximately $1.1 billion CAD, underscores its potential to expand its MSS Network in collaboration with Apple. This agreement is expected to more than double Globalstar’s revenue following the launch of the new constellation, with substantial prepayments and investments already secured.
Despite these positive developments, there are concerns among investors regarding potential competition from Apple’s collaboration with SpaceX for Starlink services. However, Flannery believes that Globalstar’s arrangement remains secure. The projected revenue growth and improved EBITDA margins by 2028 contribute to an updated price target of $25. Nonetheless, given the uncertainties and competitive landscape, a Hold rating is deemed appropriate at this time.