UPDATE: Midtown Partners Initiates Coverage on Iridium Communications with Strong Buy Rating, $8.50 PT on Multiple Growth Drivers Ahead

In a report published Thursday, Midtown Partners analyst Michael Rindos initiated coverage on

with a Strong Buy rating and $8.50 price target. In the report, Midtown Partners noted, “Iridium provides global telephony and M2M service via its satellite network. Its service appeals to, and is often required, for those who need communications service in remote areas where land line or traditional wireless service is not available. End users include the military /department of defense, maritime, aviation, oil and gas industries etc. Industry watchers believe this is a $2-3 billion industry, growing at a compounded annual rate of about 10% out to 2017. Importantly, data services, including M2M (Machine to Machine, for remote monitoring and control) markets are likely to be significant growth drivers going forward, as the cost of devices and service has fallen to levels that make widespread adoption more attractive, and applications are more plentiful.” Iridium Communications closed on Thursday at $6.90.