Ric Prentiss, an analyst from Raymond James, maintained the Buy rating on Iridium Communications. The associated price target was lowered to $26.00.
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Ric Prentiss’s rating is based on the strategic developments and competitive landscape surrounding Iridium Communications. Despite the recent competitive pressures from SpaceX Starlink’s acquisition of spectrum rights, Prentiss believes that Iridium’s core business remains resilient. The spectrum deal is expected to allow Starlink to compete more directly with Iridium’s services, but this competition is anticipated to materialize only after 2027, giving Iridium time to adapt and strategize.
Additionally, Prentiss maintains confidence in Iridium’s financial projections, with stable OEBITDA estimates for the coming years. The valuation of Iridium’s stock is supported by a free cash flow yield methodology, which underpins the adjusted price target. This combination of factors, including the delayed competitive impact and solid financial outlook, justifies the Buy rating for Iridium Communications.