UPDATE: CRT Initiates Coverage On ORBCOMM Inc

CRT on Tuesday initiated coverage on ORBCOMM Inc ORBC with a Buy rating and $9 price target.

Analysts Brian Ruttenbur and Corey Allen felt that ORBCOMM is “extremely well-positioned for growth” in the Machine-to-Machine (M2M) market as a leading provider with “the largest market share based on number of subscribers.”

According to CRT, M2M “refers to technologies that allow both wireless and wired systems to communicate with other devices. This system of technologies can provide automated data collection and transmission, such as tracking and monitoring the status of vehicles, containers, or ships including the monitoring of important information such as location, temperature, or inventory status.”

Drivers of the M2M market include:

•  1. Improved Efficiencies and ROI with a one-year or less payback.
•  2. Food Safety Legislation requiring food to be tracked.
•  3. Automatic Identification Systems for tracking cargo ships.

CRT suggested that the company’s new satellite constellation will allow for increased speed, reliability and connectivity. CRT expects that “ORBCOMM will experience solid top line growth over the next three years, with a more than 13% CAGR from 2014 through 2016.”

ORBCOMM recently traded at $5.88, up 1.2 percent.