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Investing.com - Cantor Fitzgerald has reiterated an Overweight rating and $40.00 price target on Iridium Communications (NASDAQ:IRDM) ahead of the company’s second-quarter earnings report scheduled for July 24. According to InvestingPro data, analysts maintain a strong buy consensus with price targets ranging from $25 to $47, while the company’s current market capitalization stands at $3.37 billion.
The firm expects Iridium’s 2025 profitability outlook to remain stable despite potential tariff-driven costs, noting management’s previous messaging about limited risk from these pressures. Supporting this view, InvestingPro data shows the company maintains a healthy 72.5% gross profit margin and has demonstrated consistent revenue growth with a 5-year CAGR of 8%. Cantor Fitzgerald also highlighted management’s reference to the company’s performance during the 2008 economic downturn, when Iridium still achieved sales growth despite cyclical challenges.
The research firm identified several factors that could help Iridium’s stock performance, including meeting financial targets, providing updated details on tariff impacts, and sharing more information about its Direct-to-Device (D2D) and Internet of Things (IoT) product roadmap and partnerships scheduled for fourth-quarter 2025 entry into service.
Cantor Fitzgerald also emphasized the importance of updates regarding Iridium’s government opportunity pipeline, particularly given increased demand from US and European environments and what the firm describes as "lack of credible alternatives."
The firm views Iridium’s stock repurchases as "an incredibly constructive sign" and believes the company is well-positioned due to its L-band radio frequency capabilities and cash generation, though it notes uncertainty about what might trigger sentiment improvement comparable to other industry players trading at higher multiples. InvestingPro analysis confirms management’s aggressive share buyback strategy, with the company maintaining strong liquidity metrics and a current ratio of 1.99. Subscribers can access 8 additional ProTips and comprehensive valuation metrics in the Pro Research Report.
In other recent news, Iridium Communications Inc. has announced several significant developments. The company reported the launch of a new messaging app, Iridium Chat, compatible with its Iridium GO! exec satellite communication device. This app is available for free on Apple (NASDAQ:AAPL) and Android platforms and supports app-to-app messaging, image sharing, and location updates. Additionally, Iridium introduced a new unlimited midband data plan, Iridium Certus 100, aimed at users with lower-bandwidth needs. The company has also partnered with Syniverse to enhance global satellite connectivity for mobile network operators through its Iridium NTN Direct service, which offers direct-to-device messaging and IoT capabilities.
In corporate governance news, Iridium’s stockholders approved an Amended and Restated 2015 Equity Incentive Plan, reserving over 38 million shares for issuance under stock options and other equity awards. They also ratified KPMG LLP as the independent auditor for the fiscal year ending December 2025. Furthermore, Iridium’s Board declared a cash dividend of $0.14 per share, payable at the end of June 2025. Meanwhile, Oppenheimer initiated coverage on Iridium with an Outperform rating and a $34 price target, citing the company’s unique global L-band spectrum and potential revenue growth from new service enhancements. These developments reflect Iridium’s ongoing efforts to expand its market presence and enhance shareholder value.
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