BWS Financial analyst Hamed Khorsand maintained a Sell rating on Iridium Communications today and set a price target of $16.00.
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Hamed Khorsand has given his Sell rating due to a combination of factors impacting Iridium Communications. The company is encountering heightened competition, which was not anticipated, leading to a shift in its business strategy. This includes altering its capital allocation plan by halting its stock buyback program.
Additionally, Iridium is now focusing more on securing U.S. government contracts, a process that could take several months before it starts generating revenue. Despite an increase in commercial IoT subscribers, the company still faces significant business risks. These factors, along with the acknowledgment from management about the removal of Iridium’s 2030 growth projections, contribute to the assessment that the company is no longer on a linear growth trajectory.
According to TipRanks, Khorsand is a 5-star analyst with an average return of 13.8% and a 56.56% success rate. Khorsand covers the Technology sector, focusing on stocks such as Innodata, Adeia, and Ubiquiti Networks.