Iridium upgraded to Overweight from Equal Weight at Barclays - InvestingChannel

Iridium upgraded to Overweight from Equal Weight at Barclays

Barclays analyst Mathieu Robilliard upgraded Iridium Communications to Overweight from Equal Weight with a price target of $47, up from $42, which represents 26% upside. Recent results show that in a post pandemic world, Iridium’s “growth engines are intact thanks to structural growth in demand and its competitive challenger position,” Robilliard tells investors in a research note. Unlike peers, the company is not threatened by the upcoming new constellations as it targets a small, yet growing, niche that does not require high bandwidth but rather global coverage, service/antenna affordability and reliability, says the analyst. He adds that Iridium is in the “sweet spot” of its business model, with no material capex over the next 10 years. Robilliard expects the company’s free cash flow generation to double in the next five years.