UPDATE: Bank of America Initiates Buy Rating on Intelsat; Delevering Drives Equity Returns

In a report published on Tuesday Bank of America initiated coverage on Intelsat SA

with a buy rating and a $30 price target. In the report analyst Michael J. Funk reported that, "Returns to equity holders accrue through the deleveraging process, which is driven in large part by completed refinancing activity. Our forecasts imply FCF generation of 20% and 26% of Intelsat's market cap on a 2-year and 3-year basis, respectively." Intelsat closed on Friday at $24.41