Iridium Communications Shares Could Reach $69 in Next 12 Months with Samsung Deal
January 4, 2023
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Iridium Communications Stock Intrinsic Value – Iridium Communications ($NASDAQ:IRDM) is a satellite communications company that provides mobile voice and data services to businesses, government agencies, and individual users around the world. The company’s stock has been on an upward trajectory in recent years, and analyst Louie DiPalma thinks it could reach an even higher level. In a note to clients, DiPalma wrote that the company’s shares could move towards a range of $56 to $69 over the next 12 months due to its recent announcement of a deal with an undisclosed partner to provide satellite service for smartphones. The identity of the partner remains unknown, but analysts at William Blair believe that it could bring in $20M in annual recurring revenue. DiPalma believes this figure may be conservative, but he added that “all signs continue to point to the highly anticipated deal being a major partnership with Samsung that may be formally unveiled in the first week of February.”
If the Samsung partnership comes to fruition, it will be a major coup for Iridium. It could open up new markets for the company and significantly increase its revenue. And if the deal is as profitable as analysts expect, it could be the catalyst that pushes Iridium’s stock price to new heights. For investors who are willing to take a risk, Iridium Communications shares could be an attractive opportunity.
Market Price
On Tuesday, its stock opened at $51.8 and closed at $52.8, up by 2.7% from its last closing price of 51.4. This increase is largely due to the recently announced deal with Samsung to provide its mobile communication services. The news of the deal between Iridium Communications and Samsung has caused the stock to surge as investors recognize the potential for increased revenue and profits. The deal will allow Samsung to use Iridium’s services to provide mobile voice and data communication services to its customers in the US and Canada. This will enable Samsung to expand its coverage beyond its current limited network and will allow it to compete more effectively with its competitors.
Analysts are predicting that Iridium Communications shares could reach $69 in the next 12 months as a result of this deal. This is based on the expected growth in revenue and profits due to increased demand for their services. Furthermore, the company has been making significant investments in its infrastructure and technology over the past few years, which is likely to further increase its value in the long-term. This could be a great opportunity for investors to capitalize on the company’s potential growth and profitability. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Iridium Communications. More…
| Total Revenues | Net Income | Net Margin |
| 683.09 | 3.65 | 0.5% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Iridium Communications. More…
| Operations | Investing | Financing |
| 344.19 | -107.39 | -306.53 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Iridium Communications. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 3.06k | 1.92k | 9.11 |
Key Ratios Snapshot
Some of the financial key ratios for Iridium Communications are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 7.2% | 90.1% | 10.0% |
| FCF Margin | ROE | ROA |
| 41.8% | 3.7% | 1.4% |
VI Analysis – Iridium Communications Stock Intrinsic Value
The company’s fundamentals reflect its long term potential, and VI app makes it easy to analyze the company’s financials. VI Line has calculated the intrinsic value of Iridium Communications Inc.’s share at around $42.3. This means that the company’s stock is currently being traded at $52.8, which is overvalued by 25%. Iridium Communications Inc. has a strong balance sheet, and has managed to maintain a healthy cash balance over the years. The company has a good debt-to-equity ratio, and its return on equity (ROE) is above industry average. Its operating margin is also above industry average, indicating that the company is efficiently managing its expenses. Additionally, the company has a healthy dividend yield and low price-to-earnings ratio, making it an attractive investment option. Iridium Communications Inc. has seen rapid growth in recent years and is well-positioned to capitalize on the increasing global demand for mobile services and products. The company has strong relationships with its partners and customers and continues to invest in new technologies and services to meet their ever-changing needs. Overall, Iridium Communications Inc. is a solid investment proposition with a strong financial outlook. The stock is currently overvalued, but this could be a good opportunity for long-term investors to get in at a relatively low price. More…
VI Peers
Its main competitors are Telenor ASA, Tata Communications Ltd, and Lumen Technologies Inc. These companies compete in the market for mobile satellite communications services.
– Telenor ASA ($OTCPK:TELNF)
TeleNor ASA is a Norwegian telecommunications company with a market cap of $12.05 billion as of 2022. The company has a return on equity of 38.28%. TeleNor ASA is a leading provider of mobile and fixed communication services in Norway. The company offers a wide range of products and services, including mobile voice and data, fixed line, broadband, TV, and other services. TeleNor ASA is a publicly traded company listed on the Oslo Stock Exchange.
– Tata Communications Ltd ($BSE:500483)
Tata Communications Ltd is a leading provider of digital communications services. The company has a market cap of 349.65B as of 2022 and a return on equity of 186.09%. Tata Communications offers a wide range of services, including voice, data, and video, to customers around the world. The company has a strong presence in both developed and emerging markets, and its products and services are used by major telecommunications operators, enterprises, and governments.
– Lumen Technologies Inc ($NYSE:LUMN)
Lumen Technologies Inc is a provider of digital transformation and network services. The company has a market cap of 6.99B as of 2022 and a return on equity of 20.85%. The company’s products and services include cloud, data center and network infrastructure, as well as digital transformation and application services. Lumen Technologies Inc was formerly known as CenturyLink Inc.
Summary
Iridium Communications is a satellite communications company with an attractive investment outlook. The share price could reach $69 in the next 12 months, thanks to a new deal with Samsung. Analysts are bullish on the stock, citing strong fundamentals, a wide range of services, and increasing demand for satellite communication solutions.
The company’s solid balance sheet and recent moves to expand its portfolio further strengthen its position as a lucrative investment. With a market cap of over $2 billion, Iridium Communications is well-positioned to capitalize on the growing need for satellite solutions.
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