Iridium Communications Inc. (IRDM) Downgraded at Raymond James on Competition Concerns

Iridium Communications Inc. (NASDAQ:IRDM) is one of the best buy-the-dip stocks to buy, according to analysts. On September 11, Raymond James downgraded the stock to an ‘Outperform’ from ‘Strong Buy’ and cut the price target to $26 from $39.

The downgrade is in response to SpaceX Starlink’s announcement that it will purchase 50 MHz of AWS-4 (S-Band) and H-Block spectrum in the US from SATS. The purchase is poised to heighten competition in the space, which the research firm is wary of.

According to Raymond James, Iridium Communications has faced significant pressure due to competitive concerns from SpaceX Starlink. Amid the soaring competition, the stock has pulled back by about 29% in recent weeks.

Iridium Communications Inc. (NASDAQ:IRDM) provides global voice and data services using a network of 66 low-Earth orbit (LEO) satellites, offering true worldwide coverage across the entire planet, including the poles, oceans, and airways. This unique, interconnected mesh network enables reliable and seamless communication, allowing services such as satellite phones, text messaging, and internet access from virtually any location.

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Disclosure: None. This article is originally published at Insider Monkey.