We are initiating coverage of Iridium Communications with a Buy rating and a $40 12-month price target. Ever since the company – a pioneer in affordable, easily available, and highly reliable satellite voice and data wireless coverage – emerged from bankruptcy in the early 2000s and launched its next generation NEXT constellation of low earth orbiting (LEO) satellites, the demand for Iridium’s service has steadily grown. We have now reached a point on the company’s growth arc when having a “sat phone” is almost a given among those who travel in remote parts of the world and need seamless connectivity. At the same time, Iridium’s fundamentals have steadily improved, and we expect the company to earn$494 mn of Operational (Adjusted) EBITDA in 2025. Competitively, Iridium has established itself as the undisputed Number One provider of reliable satellite mobile communications, a position that we believe will allow the company to sustain a premium multiple based on its growth and highly defensible market position.