Chardan Bullish on Globalstar (GSAT) Following FCC AWS-3 Auction Results

Chardan Capital is positive on Globalstar, Inc. (NYSE: GSAT) following completion by the U.S. FCC of 337 round of AWS-3 auction. Provisionally winning bids total $44.9 billion for the 65 MHz of spectrum in the 1.7 GHz and 2.1 GHz bands.

Analst James McIlree commented, In our view, the auction results are highly supportive of our thesis on Globalstar which assumes the FCC’s NPRM on Globalstar’s Wi-Fi spectrum, at 2.4Ghz, will result in a reclassification to allow terrestrial usage. Assuming Globalstar’s constellation is worth about $350 million, we estimate the market is valuing Globalstar’s spectrum at less than $0.50 per MHz-POP and giving no consideration for its international Wi-Fi spectrum nor its global L-band spectrum.

We expect a final ruling on the TLPS NPRM relatively soon. We believe the final FCC rule will look much like the NPRM and Globalstar will then be able to monetize its spectrum by partnership(s) with carriers or technology companies looking to offer a new or adjunct service with the spectrum.

Chardan has Globalstar at Buy with a price target of $6.

For an analyst ratings summary and ratings history on Globalstar click here. For more ratings news on Globalstar click here.

Globalstar closed at $2.56 yesterday.

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