Edison Investment Research Initiates iQSTEL Coverage, Values Stock at $6

Edison Investment Research has initiated coverage of global telecommunications and technology firm iQSTEL Inc. (NASDAQ: IQST), setting a valuation target of $6 per share. The research report, "Innovating on a global platform," suggests the company is approaching a financial turning point driven by its global telecommunications platform, the anticipated addition of Ultranet, and the development of higher-margin digital services.

The firm projects iQSTEL's revenue to grow from an estimated $461.5 million in 2026 to $653 million in 2027. Edison forecasts a significant shift in profitability, with adjusted EBITDA expected to rise from near breakeven in 2026 to $12.5 million in 2027. The company's free cash flow is also projected to turn positive, reaching approximately $7 million in 2027, up from an estimated negative $5 million in 2026.

These projections are underpinned by the expected contribution of Ultranet, which operates in Africa and has existing carrier agreements, and by iQSTEL's expansion into higher-margin digital services. While digital services are expected to be a smaller portion of total revenue, their higher margins are anticipated to significantly contribute to overall profitability. The report also notes that migrating operations to a common technology platform could enhance efficiency and support EBITDA growth.

Edison suggests that improved cash generation could reduce iQSTEL's historical reliance on equity financing and broaden its financial options. The research firm acknowledges risks including execution, funding, acquisition integration, and cybersecurity. The $6 valuation is conditional on iQSTEL meeting these financial expectations and aligning its valuation with comparable businesses.