Globalstar (GSAT) Stock Rockets On B. Riley Initiation

Globalstar Inc. (NYSEAMERICAN: GSAT) is screaming for the top in the market this morning, but if you’re looking for press releases or SEC filings that act as the catalyst for the move, you’ll be hard-pressed to find anything. The company hasn’t issued any news. 

Instead, it looks like an opinion from an analyst is sending shares higher. Here’s what’s going on:

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B. Riley Securities Initiates Coverage On GSAT

While Globalstar hasn’t issued any news that acts as the catalyst for the strong movement we’re seeing in the stock this morning, it didn’t have to. The gains are the result of the fact that B. Riley Securities initiated coverage on the stock. 

The analyst firm started coverage with a Buy rating and a price target of $3.25, suggesting the potential for well over 200% growth in the stock over the next year. 

Why Is This Such A Big Deal?

Positive analyst opinions often send stocks for the top, as is the case with GSAT this morning. Here’s why investors are so excited:

  • A High Price Target. First and foremost, investors would have likely been excited with a price target around $1.75, or $2.00, but this target goes far beyond that, suggesting that there’s potential for extreme gains in the stock this year. 
  • B. Riley Is Highly Regarded. B. Riley is one of the most trusted analyst firms on Wall Street today. As a result, when they come out with coverage, the investing community tends to pay close attention. 
  • Analysts Live, Eat & Breath The Market. Investors tend to pay close attention to analysts because these people live in the market. Their jobs are to comb through and take a deep dive into the data of companies that they cover. As a result, their opinions are highly researched, calculated views of what to expect, offering deeper insight into opportunities than the average investor gets when they do their own research. 
  • Analysts Often Undercut. Analysts often undercut the opportunity, pointing to potential for upward movement, but leaving a margin for that movement to beat their expectations. If that’s the case here, the gains in GSAT stock ahead could be tremendous. 

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The Bottom Line

The bottom line here is simple. Globalstar has grabbed the attention of one of the most trusted analyst firms on Wall Street and ended up with a positive opinion. That’s impressive for such a small company, one that the analysts at B. Riley point to an extreme undervaluation in. 

All in all, the coverage is great news for the company, and its investors, sending GSAT stock for the moon! 

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