The Covington, La., company "and its sponsors, after years of development, support, and patience, are at long last starting to realize a return on satellite system and spectrum assets,” said B. Riley analyst Mike Crawford.
That “makes 2021 an excellent time to buy GSAT before the market digests this change.”
The stock recently traded at $1.51, up 17%. It has more than quadrupled (up 371%) over the past six months amid explosive demand for mobile data.
“We believe many investors perceive GSAT as a long-suffering, over-leveraged mobile satellite services provider with spectrum assets that have been difficult to monetize,” Crawford said.
“In contrast, our investment thesis is that Globalstar has moved through the high-risk portion of its history and is now poised to start generating returns on its hard-fought terrestrial spectrum authorization.”
“VZ offers a robust yield of 4.38% and so is appropriate for income investors. The stock is available at a slight discount to my fair-value estimate,” Scheepers said.
“Don’t expect fireworks from this company, though. It is growing earnings at a very modest rate.”
Revenue registered $19.76 billion, up 78% from $11.11 billion in the year-ago quarter. The FactSet analyst consensus called for $18.73 billion.