Iridium initiated with an Outperform at Oppenheimer

Oppenheimer initiated coverage of Iridium (IRDM) with an Outperform rating and $34 price target The company provides the only mission-critical voice and data connectivity services globally over 66 LEO satellites, the analyst tells investors in a research note. The firm says Iridium’s constellation’s network structure and “unique” global L-band spectrum occupy a “mission-critical niche that is unlikely to be replicated.” It believes the company is seeing major new revenue streams from soon to come direct-to-device capabilities, improved internet of thing speeds and devices, and now a new position navigation and timing service. Opco believes Iridium is positioned to double services revenue growth to the high single digits, driving free cash flow per share growth above 20%.

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