Intelsat jumps on JP Morgan report
April 4, 2019
Investment banker JP Morgan has issued a favourable report on Intelsat and, in particular, its potential prospects should the Federal Communications Commission (FCC) approving the C-Band Alliance’s plans for reallocation of some key frequencies and bandwidth over the US.
The bank sees the potential for “substantial” proceeds from spectrum sales by the company and its C-Band Alliance parttners, and the ‘Overweight’ rating prompted a significant (11.46 per cent) rise in Intelsat’s share price, and rocketing upward from $15.29 a share to $17.09 on April 3rd.
SES, also a member of the Alliance enjoyed an initial €0.40 rise on the news, and a further 2.2 percent rise on April 3rd.
JP Morgan analyst Philip Cusick wrote that some kind of market-based approach – which the Alliance is backing – would place the vacated spectrum into the hands of 5G carries.
However, he cautioned that the FCC could take longer than “mid-year” to make their decision. Nevertheless he issued a price of $27, a 76 percent upside on Intelsat’s $15 price.
Over the past year Intelsat has traded from a ‘low’ of just $3.55 to a ‘high’ of $37.70.
Other posts by Chris Forrester:
- Bank: “Starlink 18 months ahead on D2D”
- AST SpaceMobile trims satellite demand
- Amazon’s Kuiper-1 launch brought forward
- SES and Eutelsat possibly in line for C-band $bn bonus
- Consultant: “European satellite mergers are failing”
- Ligado attempts to unravel Inmarsat L-band agreement
- SpaceX complains over South Africa investment rules
- Vodafone, AST test video call game changer
- Eutelsat shares hit all time low