Check-Cap to merge with MBody AI in embodied AI workforce push
Investing.com - BWS Financial downgraded Iridium Communications (NASDAQ:IRDM) from Neutral to Sell on Tuesday, slashing its price target to $16.00 from $25.00 amid concerns over competitive threats from Starlink. The stock, which has fallen nearly 14% in the past week and is currently trading at $20.31, appears undervalued according to InvestingPro analysis.
The downgrade follows Starlink’s announced acquisition of EchoStar’s (NASDAQ:SATS) AWS-4 and H-block spectrum licenses for approximately $17 billion, which BWS Financial describes as an "existential threat" to Iridium’s business model.
BWS Financial notes that by securing exclusive terrestrial spectrum, Starlink will be able to accelerate deployment of a high-throughput, low-latency "Direct-to-Cell" service that works on standard smartphones, directly challenging Iridium’s core competitive advantages.
The research firm specifically highlights the threat to Iridium’s Internet of Things business, which it describes as "the core engine of IRDM’s free cash flow."
While the acquisition between SATS and Starlink is set to be consummated in November 2027, BWS Financial believes the market will price in this competitive overhang now rather than waiting two years, justifying the immediate downgrade. For deeper insights into Iridium’s competitive position and detailed financial analysis, investors can access the comprehensive Pro Research Report available on InvestingPro, which includes additional metrics and expert analysis.
In other recent news, Iridium Communications Inc. reported its financial results for the second quarter of 2025. The satellite communications provider announced earnings per share of $0.20, which fell short of the analyst consensus estimate of $0.24. Despite this earnings miss, the company posted revenue of $216.9 million, surpassing the consensus estimate of $214.01 million and marking an 8% increase compared to the same period last year. These mixed results have been a focal point for investors, as the earnings miss overshadowed the revenue beat. The revenue growth highlights a positive trend, even as the earnings fell below expectations. These developments have been closely monitored by analysts and investors alike.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.