Globalstar price target raised to $5 from $4 at Craig-Hallum

Craig-Hallum analyst George Sutton raised the firm’s price target on Globalstar (GSAT) to $5 from $4 and keeps a Buy rating on the shares after it was disclosed that “the next evolution” of Globalstar’s partnership with Apple (AAPL) comes with significantly upsized services, infrastructure, and financial commitments. Through the updated agreements, Apple is committing an additional $1.7B to Globalstar through funding for infrastructure, repayment of debt, and an equity investment in the new SPE created under the agreement, notes the analyst, who would “find it hard to believe that this agreement doesn’t change” the view of those who doubted Apple’s long-term commitment to Globalstar. The firm, which continues to believe that Apple has “much larger plans from a satellite technology standpoint,” still sees an opportunity for Globalstar investors even with the stock up about 40% today, the analyst added.