California-based investment banking firm Roth Capital issued a buy rating for Amazon stock (NASDAQ: AMZN) following the company’s announcement of a $11.6 billion acquisition of Globalstar to expand its satellite communications business. The firm set a new price target of $285, representing a potential 15% return from a $249 opening price. The strategic move into the satellite sector positions Amazon against competitors like SpaceX as broader tech stocks, including Alphabet and Apple, experience a market upsurge.
Investment banking firm Roth Capital issued a buy rating for Amazon stock after the e-commerce giant announced its acquisition of Globalstar for $11.6 billion to expand its satellite communications business. The acquisition comes as Elon Musk’s SpaceX IPO aims for a $2 trillion valuation, potentially setting the stage for competition in broadband-based space connectivity.
The market is noticing the strategic move, and Roth Capital provided a new price prediction for Amazon stock. AMZN opened Wednesday’s trading bell at $249 and has surged more than 10% over the past week.
Roth Capital’s latest price target for Amazon stock is $285. This represents an approximate 15% return on investment from its current price.
In a note to clients, Roth Capital called the acquisition of Globalstar a “meaningfully de-risk” for large-scale space connectivity deployments. The deal covers Globalstar’s satellite operations, infrastructure, assets, and its lower-frequency mobile satellite service.
April has been a positive month for the equity as the broader tech sector experienced a surge in value. Stocks such as Google’s Alphabet, Apple Inc, and Meta have turned green this month.
