BWS Financial has revised its price target for Iridium Communications (IRDM, Financial), lowering it from $30 to $25 while maintaining a Neutral rating on the stock. This adjustment comes despite Iridium's first-quarter performance exceeding expectations, driven mainly by engineering revenue rather than the anticipated services revenue.
The financial firm expressed concern over Iridium's capacity to generate $300 million in free cash flow for the current year, as well as the prospect of repeating this achievement in the following year. BWS Financial cited the current market conditions and company management's outlook as factors contributing to the uncertain financial trajectory.
Investors remain cautious, as the sustainability of these financial goals appears challenging under the present circumstances. This new price target reflects BWS Financial's tempered expectations for Iridium's future financial performance.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 7 analysts, the average target price for Iridium Communications Inc (IRDM, Financial) is $40.00 with a high estimate of $47.00 and a low estimate of $30.00. The average target implies an upside of 76.95% from the current price of $22.61. More detailed estimate data can be found on the Iridium Communications Inc (IRDM) Forecast page.
Based on the consensus recommendation from 8 brokerage firms, Iridium Communications Inc's (IRDM, Financial) average brokerage recommendation is currently 1.9, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Iridium Communications Inc (IRDM, Financial) in one year is $59.72, suggesting a upside of 164.19% from the current price of $22.605. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Iridium Communications Inc (IRDM) Summary page.
