Could Globalstar’s (GSAT) Brazil Expansion Redefine Its Long-Term Growth Narrative?

• Globalstar, Inc. recently reported third-quarter results with revenue of US$73.85 million, slight year-over-year growth, but net income fell to US$1.09 million; the company also reaffirmed full-year revenue guidance and announced a significant infrastructure expansion project in Brazil, highlighting ongoing investment in next-generation satellite connectivity.
• The network expansion across Brazil and the confirmed guidance reflect Globalstar’s continued focus on future service capacity, particularly in regions underserved by terrestrial mobile networks.
• We'll explore how the Brazil infrastructure expansion and renewed guidance could impact Globalstar’s long-term investment narrative and prospects.

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Globalstar Investment Narrative Recap

To own Globalstar, an investor needs confidence in the growing demand for satellite-based connectivity and the company’s ability to deliver reliable service at scale, especially in underserved regions. Recent news shows modest revenue growth with pressured profitability; the reaffirmed guidance suggests incremental momentum for 2025, but the ongoing high capital investment requirements remain the biggest short-term risk, while expansion projects and high-profile M&A discussions represent the key catalysts right now. The net impact from these announcements does not materially change the overarching risk that substantial capital outlays could continue to pressure cash flow if revenue growth does not accelerate meaningfully or if customer delays persist.

The announcement of eight additional C-3 tracking antennas across Brazil stands out as the most relevant event, further supporting Globalstar’s long-term ambitions for network capacity and reliability. This infrastructure build directly addresses a critical growth catalyst, scaling global service to support next-generation IoT and direct-to-device applications, increasing the company’s addressable market and reinforcing the narrative behind its expansion investments.

However, investors should be aware that despite these growth efforts, Globalstar’s business model remains exposed to the risk...

Read the full narrative on Globalstar (it's free!)

Globalstar's narrative projects $383.1 million revenue and $75.2 million earnings by 2028. This requires 13.7% yearly revenue growth and a $124.2 million increase in earnings from -$49.0 million.

Uncover how Globalstar's forecasts yield a $60.00 fair value, a 19% upside to its current price.

Exploring Other Perspectives

Simply Wall St Community members submitted eight fair value estimates for Globalstar, ranging from US$4.65 to US$60 per share. While views diverge widely, many point to ongoing and significant capital expenditure as a factor that could weigh on near-term progress and longer-term profitability; explore these alternative viewpoints to understand how market participants assess Globalstar’s evolving story.

Explore 8 other fair value estimates on Globalstar - why the stock might be worth as much as 19% more than the current price!

Build Your Own Globalstar Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Globalstar research is our analysis highlighting 1 key reward and 2 important warning signs that could impact your investment decision.
• Our free Globalstar research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Globalstar's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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