Morgan Stanley analyst Justin Lang CFA maintained a Buy rating on Iridium Communications today and set a price target of $37.00.
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Justin Lang CFA has given his Buy rating due to a combination of factors that highlight Iridium Communications’ potential for growth despite recent market challenges. The recent SpaceX-EchoStar spectrum deal has created concerns about increased competition, leading to a significant drop in Iridium’s stock price. However, Lang believes these concerns are overblown and sees opportunities for Iridium to capitalize on its existing strengths.
Lang anticipates steady growth in Iridium’s IoT data revenue, which is expected to outpace consensus estimates. Additionally, the company’s focus on share repurchase activities could provide a cushion against market volatility and reassure investors of its long-term prospects. The ongoing transition in Iridium’s broadband sector, particularly in the maritime business, is also seen as a strategic move that could yield positive results in the future. Overall, Lang’s Buy rating reflects confidence in Iridium’s ability to navigate competitive pressures and deliver value to shareholders.