Analysts Divided on Future Growth Prospects for Intelsat
Intelsat (NYSE: I), headquartered in Luxembourg, is a communications satellite services provider. According to the company SEC filing, Intelsat operates a fleet of over 50 communications satellites that serve media, telecommunications and government customers in approximately 200 countries and territories.
According to Sarika Gangar at Bloomberg, Intelsat recently completed a $2.6 million offering in 10-year bonds to pay existing debt.
Analysts' opinions remain split on the smoothness of Instelsat's de-leveraging process. Analysts at Nomura, JP Morgan and Bank of America initiated coverage on Intelsat with positive ratings while analysts at Morgan Stanley, Goldman Sachs, and Deutsche Bank initiated coverage with more Neutral-based ratings. Price targets range from $25 to $30.
Analysts that were bullish on the stock noted that revenue backlog for the company provides short and long-term revenue stability and a favorable tax structure from being headquartered in Luxembourg. Analysts that were bearish on Intelsat reported that its strengths in the industry are counter balanced by high debt levels and a lack of short-term catalysts.
Shares closed on Friday at $24.41.
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