Barclays upgraded satellite communications company Iridium to overweight on Thursday, saying there’s 29% upside for the stock after its “solid” second quarter and attractive outlook. Iridium posted on Tuesday a second-quarter net loss of $30.7 million on revenue of $193.1 million, but its operational EBITDA rose 9% from a year ago to $115.8 million, a record high. Iridium attributed its loss to a write-off of extra satellites following a successful launch in May. “The stock fell [9% on Tuesday] however as management indicated that the upcoming [direct-to-device] revenue opportunity would take time to grow. This is in line with the scenario we had in mind, and so we now consider the risk/reward attractive,” Barclays analyst Mathieu Robilliard wrote in a note to clients. Barclays has a $65 price target on Iridium’s stock, or 29% above Thursday’s close of $50.58 a share. Iridium’s stock is flat year-to-date. Sign up here to receive weekly editions of CNBC’s Investing in Space newsletter . The firm’s bullish outlook is connected to Iridium’s opportunity in the nascent direct-to-device (D2D) satellite market . “We believe this will represent a strong source of revenues for Iridium, but will be gradual (c. $90m by 2027),” Robilliard wrote. – CNBC’s Michael Bloom contributed to this report.
