Why Globalstar (GSAT) Is Up 8.5% After Upbeat Analyst Upgrades and Momentum Recognition – And What's Next

• Recently, Globalstar (GSAT) was highlighted as a strong momentum stock, earning a Momentum Style Score of B and the top Zacks Rank (#1), following a series of upward earnings estimate revisions.
• This increased analyst positivity and strong stock momentum have placed the company ahead of its industry peers and the broader market, fueling heightened investor interest.
• To understand how analyst upgrades and positive estimate trends could influence the company's outlook, we'll explore their effect on Globalstar's investment narrative.

Find companies with promising cash flow potential yet trading below their fair value.

Globalstar Investment Narrative Recap

To be a shareholder in Globalstar, you need to believe in its ability to convert strong momentum and improved analyst sentiment into sustainable revenue growth, supported by continued progress in government and enterprise partnerships. While the recent analyst upgrades and momentum scores reflect increased confidence, the most important short-term catalyst, expanding government contracts, remains intact. However, risks around revenue volatility tied to long sales cycles and customer delays are largely unchanged by the news.

The announcement on August 14, 2025, regarding new government contract awards projecting at least US$60 million in revenue over five years, ties directly into recent analyst upgrades as it supports momentum in government solutions. This aligns closely with Globalstar's key short-term catalyst: growing recurring revenue from public sector contracts to offset industry cyclicality and improve earnings visibility.

Yet, in contrast to current optimism, investors should be aware that...

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

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

Uncover how Globalstar's forecasts yield a $52.50 fair value, a 73% upside to its current price.

Exploring Other Perspectives

Simply Wall St Community members offer nine distinct fair value estimates for Globalstar, ranging from as low as US$1.99 to US$52.50 per share. As government contracts emerge as a key revenue driver, keep in mind opinions can markedly differ so explore several viewpoints before considering next steps.

Explore 9 other fair value estimates on Globalstar - why the stock might be worth as much as 73% 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 3 key rewards 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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