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

Craig-Hallum raised the firm’s price target on Globalstar (GSAT) to $5 from $4 and keeps a Buy rating on the shares. The next evolution of Globalstar’s partnership with Apple (AAPL) comes with significantly upsized services, infrastructure, and financial commitments, the firm notes. 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. For those who doubted Apple’s long-term commitment to Globalstar, Craig-Hallum finds it hard to believe that this agreement doesn’t change that view. To the firm, this is a clear signal that Apple, and Apple’s customers, are satisfied with the services now being provided and plan to significantly expand them over time. With the stock up, Craig-Hallum still sees an opportunity for investors.