Oppenheimer upgrades NextNav to Outperform with $25 price target

As previously reported, Oppenheimer upgraded NextNav (NN) to Outperform from Perform with a $25 price target, based on 8c per MHz-POP. The firm believes the FCC Notice of Proposed Rule Making approval of the company’s re-branding is imminent. NextNav will receive an additional 1MHz of spectrum giving its contiguous 15MHz in the lower 900MHz band. The spectrum could be worth substantially more than Oppenheimer’s 80c, depending on FCC restrictions on power and coverage which will be disclosed in the NPRM, similar recent sales have been above $2 per MHz-POP. The firm sees several strategic acquirers across wireless/satellite, with AT&T (T) the most logical fit, but SpaceX and Verizon (VZ) are also credible buyers.