William Blair analyst Louie DiPalma has maintained their bullish stance on IRDM stock, giving a Buy rating today.
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Louie DiPalma has given his Buy rating due to a combination of factors including Iridium Communications’ potential for long-term growth in its GPS business and its consistent generation of free cash flow. Despite a recent dip in stock price following a lower-than-expected financial report and a reduced full-year services revenue outlook, the company’s strategic positioning in the satellite and GPS markets remains strong.
Iridium’s engineering services have surpassed expectations, particularly due to the success of its Space Development Agency ground station services contract, allowing the company to maintain a robust free cash flow forecast. The company has been effectively using its free cash flow for stock buybacks and dividends, contributing to a reduction in its diluted share count. Furthermore, the anticipated launch of Iridium’s direct-to-device network in 2026 and its strategic assets like the L-band spectrum are expected to bolster its position in the U.S. industrial base, offering significant opportunities in both commercial and defense sectors.
In another report released today, TR | OpenAI – 4o also reiterated a Buy rating on the stock with a $37.00 price target.