Skip to main content

Market Overview

Did Globalstar Deserve To Move Higher On Straight Path Takeover News?

Share:
Did Globalstar Deserve To Move Higher On Straight Path Takeover News?

AT&T Inc. (NYSE: T) announced Monday that it had agreed to acquire Straight Path Communications Inc (NYSE: STRP) in a deal valued at $1.6 billion, including liabilities.

The Straight Path acquisition highlights “the scarcity value of spectrum,” and Globalstar, Inc. (NYSE: GSAT) may soon be in a position to monetize its global spectrum, Chardan Capital Markets’ James McIlree said in a report. He reiterates a Buy rating for Globalstar, with a price target of $2.50.

Inferences From The Acquisition

Straight Path controls 222 billion MHz-POPs [megahertz per population] in the 28GHz/39HGz segment of the spectrum. This spectrum has been designated for 5G small cell use. The acquisition price of $1.6 billion underlines the high value for spectrum, McIlree commented.

“Globalstar's 2.4GHz spectrum is a fair distance from Straight Path's, with significantly different propagation characteristics so a direct price per MHz-POP comparison is not relevant. However we do believe the Straight Path purchase highlights the scarcity value of spectrum,” the analyst wrote.

Globalstar is in the process of seeking ways to monetize its US spectrum position. McIlree believes the company would be in a position to commence its efforts to monetize its global spectrum as well in the coming quarters.

Related Links:

Straight Path Communications Buyout Blindsides Short Sellers

Cliffs Natural Shares Are Hot Hot Hot For Shorts, And So Are These Other 5
________
Image Credit: Coverage of Globalstar, By GrandDixence [Public domain], via Wikimedia Commons

Latest Ratings for GSAT

DateFirmActionFromTo
Jan 2021Morgan StanleyDowngradesEqual-WeightUnderweight
Jun 2020Morgan StanleyMaintainsEqual-Weight
Apr 2020Morgan StanleyMaintainsEqual-Weight

View More Analyst Ratings for GSAT
View the Latest Analyst Ratings

 

Related Articles (GSAT)

View Comments and Join the Discussion!

Posted-In: Analyst Color Long Ideas M&A News Reiteration Analyst Ratings Movers Tech Best of Benzinga

Latest Ratings

StockFirmActionPT
YETIRoth CapitalMaintains90.0
ACBCantor FitzgeraldMaintains9.0
NICECitigroupMaintains296.0
ABNBBarclaysMaintains140.0
ABNBMizuhoMaintains165.0
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
SPAC
Everything you need to know about the latest SPAC news.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at vipaccounts@benzinga.com