Globalstar Inc. (NASDAQ: GSAT) stock gained by 23.18% at last close while the GSAT stock price rises by 4.3% in the after-hours session. Globalstar is a major provider of customized Satellite IoT Solutions to clients in industries including oil and gas, transportation, emergency management, government, marine, and outdoor leisure all over the globe.
What is happening?
B Riley (NASDAQ: RILY) started coverage of Globalstar on June 21, 2021, with a buy rating and a target price of $3.25 on GSAT, which is presently trading at $1.50 or thereabout, a clean double, plus a little more. “Globalstar and its backers are finally beginning to receive a return on satellite system and spectrum assets, after years of growth, support, and patience,” Riley says. However, it makes 2021 a great moment, in their opinion, to acquire GSAT.”
Globalstar shares has risen after B. Riley analyst Mike Crawford gave GSAT a buy recommendation yesterday. Crawford released his research note yesterday, setting a $3.25 price objective on the stock, which was more than quadruple its share price at the time, and claiming that the company’s satellite and spectrum assets are “at long last starting to achieve a return.”
Investors acted quickly on his advice, sending Globalstar’s shares up 23% yesterday, before continuing to rise today.
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Crawford’s upbeat investor letter might help Globalstar’s stock price rise in the short term for two reasons: First, he was optimistic about Globalstar as a whole, saying that it had “gone past the high-risk phase of its history and is now ready to start delivering profits.”
Second, on Reddit’s WallStreetBets community, Globalstar has been a popular stock. That isn’t to say that Globalstar isn’t a smart investment, but it does suggest that the market’s reaction to good news about GSAT may drive its stock higher, since retail investors on the forum are typically favorable on the stock.
Globalstar’s shares have risen 454 percent in the last year, and with today’s increase, it looks that some investors are still bullish on the company.