In a report released today, Hamed Khorsand from BWS Financial maintained a Hold rating on Iridium Communications (IRDM – Research Report), with a price target of $30.00.
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Hamed Khorsand has given his Hold rating due to a combination of factors influencing Iridium Communications. Despite the company surpassing revenue expectations in the fourth quarter, there are concerns about the decline in IoT subscribers, which is a critical growth area for the company. Although engineering revenue contributed positively to overall performance, the fixed price contract for IoT services has resulted in a subscriber drop, creating uncertainties about future growth.
Khorsand also noted that while the company reported an increase in IoT subscribers year-over-year, the fluctuations between quarters could pose challenges in maintaining consistent growth estimates. Additionally, the forecasted increase in operational EBITDA is only marginal, with a projected growth of up to 4 percent, which does not significantly outpace the 5 percent growth in service revenue. These mixed signals in performance and growth prospects led to the decision to maintain a Neutral stance on Iridium Communications’ stock.
According to TipRanks, Khorsand is a 5-star analyst with an average return of 9.6% and a 52.19% success rate. Khorsand covers the Technology sector, focusing on stocks such as Immersion, Adeia, and Ubiquiti Networks.