Major Bank Ratings | Citi: Reiterates "Buy" rating on Amazon, acquisition of Globalstar accelerates low Earth orbit satellite direct-to-device strategy

Glonghui, April 15｜Citi released a report stating that Amazon recently announced its plan to acquire Globalstar for approximately $11.6 billion. The bank believes that, with Globalstar’s satellite assets, spectrum resources, and operational capabilities, this acquisition will significantly accelerate the full deployment plan of Amazon Leo, enhance its technological capabilities, and enrich its product portfolio. As part of the acquisition, Amazon also announced that Amazon Leo will be responsible for providing satellite connectivity services for iPhone and Apple Watch, further extending Globalstar’s existing partnership with Apple. The report points out that, with Amazon Leo currently having 241 satellites in orbit and service expected to officially launch around mid-year, Amazon Leo’s strategic value for Amazon and its core retail business will become increasingly evident, especially in relatively less competitive markets. Due to accelerated revenue growth and sustained improvement in profitability, the bank reiterated its “Buy” rating, maintaining a target price of $285.