Shares of Globalstar (GSAT -16.67%) rose 36.5% in October 2022, according to data from S&P Global Market Intelligence. The stock price climbed higher thanks to a bullish analyst note just ahead of early November's earnings report.
On Oct. 31, analysts at Craig-Hallum started covering the stock with a "buy" rating. The firm's price target for the satellite networking and communications stock was pegged at $5 per share, more than double the closing price of $2.03 on the previous market day. Analyst George Sutton argued that Globalstar's radio spectrum licenses are "substantially under-credited" by the stock market, especially since Apple (AAPL -0.66%) included support for the company's satellite phone band in the iPhone 14.
The iPhone maker will also contribute 95% of the capital costs of launching new satellites in support of this service, which dramatically lowers Globalstar's financial risk. Apple should switch on this service for iPhone 14 users by the end of this year.
Craig-Hallum wasn't the first analyst firm to boost its Globalstar price target thanks to the Apple relationship, but market makers always love to see more voices joining the bullish choir.
The Apple pact has turned Globalstar's stock into one of the best-performing tech stocks in 2022. Share prices have increased by 75% year to date, ranking behind only solar power specialist First Solar among tickers in the technology and communication services sectors. That's an impressive performance in an industry group where only 11% of 561 stocks have seen a positive price move this year.
Regardless of that powerful market performance, analysts like Craig-Hallum still see room for growth. That makes sense if Apple pulls its weight in the satellite phone service partnership.