Stock Price & Analysis

Sell GSAT stock as it has a Zacks Rank #5 (Strong Sell) with significant year-to-date declines and high reliance on Apple.

Price Prediction for GSAT Stock in 2025

Based on current trends and analysis, GSAT stock is expected to decline to $18 by the end of 2025. This prediction is driven by its heavy reliance on Apple (85% of network capacity) and concerns over high liabilities compared to assets, which raise sustainability questions. Additionally, GSAT's Zacks Rank #5 (Strong Sell) and declining free cash flow projections further support this bearish outlook.

The S1 support level for GSAT Stock is $20.82 ,The R1 resistant level for GSAT Stock is $23.21.

As of the end of day on 2025-03-26, the price of GSAT Stock was $22.86.

The target price for GSAT Stock according to analyst rating is 43.33, with the highest price target at 60.00 and the lowest at 25.00. Analysts have a Moderate Buy rating on GSAT Stock overall.

The market cap of GSAT is $2.9B.

Analysis and Insights

GSAT appears overvalued based on several key factors:

1. High Valuation Metrics: GSAT trades at 10x sales, significantly above the industry average of 0.7x and the S&P 500's 5.2x, indicating a premium that may not be justified by its financial performance.

2. Revenue Growth Without Profitability: Despite record revenue of $250.3 million in 2024, GSAT reported a net loss of $50.2 million, raising concerns about its ability to convert sales into profits.

3. Dependence on Apple: With 85% of its network capacity tied to Apple, GSAT's revenue is heavily exposed to the whims of a single customer, posing a significant risk.

4. High Liabilities: The company's liabilities of $1.35 billion against $1.71 billion in assets suggest potential cash flow challenges and financial instability.

5. Negative Analyst Sentiment: Analysts predict declining free cash flow in 2025, leading to a Strong Sell recommendation, further indicating overvaluation.

Conclusion

GSAT's high valuation, profitability issues, and customer concentration risk suggest it is overvalued. Investors should exercise caution and consider these factors before making investment decisions.

Globalstar, Inc. is an international telecom infrastructure provider. The Company provides mobile satellite services, including voice and data communications services, as well as wholesale capacity services through its global satellite network. It offers these services over its network of in-orbit satellites and ground stations (gateways) pursuant to its spectrum licenses (collectively, Globalstar System). Its communications services include two-way voice communication and data transmissions via its GSP-1600 and GSP-1700 phone; one-way or two-way communication and data transmissions using mobile devices, including its SPOT family of products; one-way data transmissions using a mobile or fixed device that transmits its location and other information to a central monitoring station; satellite network access and related services utilizing its satellite spectrum and network of satellites and gateways, and engineering and other communication services using the Globalstar System.

Price Prediction for GSAT Stock in 2030

Based on current trends and partnerships, GSAT stock is predicted to reach $40-$60 by 2030.
This estimate reflects its strategic partnership with GCT Semiconductor and growth in satellite messaging technology.

GSAT has a total of 348 employees.