Dominick & Dominick Reiterates Buy on ORBCOMM Ahead of Earnings Report

In a report published Monday, Dominick & Dominick reiterated its Buy rating and $4.50 price target on ORBCOMM

. Dominick & Dominick noted, “ORBCOMM reports Thursday morning. We have revenue of $15.8 million and EBITDA of $4.3 million. Results will be skewed by the loss of the OG2 prototype and the insurance settlement associated with that loss. We have subs increasing by 23,000 to 118,000. The key for the company is the August launch of the first batch of its OG2 satellites...Our $4.50 price target assumes a 6x to 7x EBITDA multiple, which would be at the high-end of the industry range and reflects the higher growth rate. Risks to achieving this target include greater competition, delays to OG2 and overall economic weakness.” ORBCOMM closed on Friday at $4.60.