UPDATE: Credit Suisse Initiates Coverage on Intelsat SA with Neutral Rating, $25 PT on Current Valuation

In a report published Tuesday, Credit Suisse analyst Joseph Mastrogiovanni initiated coverage on

with a Neutral rating and $25.00 price target. In the report, Credit Suisse noted, “We are initiating coverage of Intelsat with a Neutral rating and $25 12-month target price. While we have a favorable view on the industry and on management's initiatives to create value, we believe near-term risks to revenue and EBITDA growth will keep investors on the sidelines over the next 12 months. We are attracted to the favorable industry trends, solid fundamentals, and capital restructuring (creating long-term value), but we believe that limited growth due to timing of satellite launches, risk to revenue from government cutbacks, and high leverage are properly reflected in current valuation that is slightly less than the historical EV/EBITDA average for FSS operators, and a discount to peers on current free cash flow due to lower growth.” Intelsat SA closed on Friday at $24.41.