Telesat (NASDAQ:TSAT) Stock Rating Raised to "Sell" at Wall Street Zen

Key Points

• Wall Street Zen upgraded Telesat from “strong sell” to “sell,” but analyst sentiment remains mixed: MarketBeat reports a consensus “hold” rating and a $33.50 target price.
• Telesat opened at $40.09, with a market capitalization of about $610 million, while its latest reported quarter showed a significant EPS miss, negative net margin of 112.44%, and analysts expecting a full-year loss.
• Institutional investors including Senvest Management, TD Waterhouse, Walleye Capital and Bank of America increased their holdings, though Telesat’s very low liquidity ratios and ongoing financing needs remain key risks.

Telesat (NASDAQ:TSAT - Get Free Report) was upgraded by Wall Street Zen from a "strong sell" rating to a "sell" rating in a report issued on Saturday, Wall Street Zen reports.

Other equities analysts have also issued reports about the company. Stifel Nicolaus initiated coverage on Telesat in a report on Thursday, July 16th. They issued a "buy" rating for the company. Weiss Ratings reiterated a "sell (d-)" rating on shares of Telesat in a research note on Monday, September 14th. Canadian Imperial Bank of Commerce started coverage on Telesat in a report on Sunday, October 25th. They set a "sector outperform" rating on the stock. Scotiabank began coverage on Telesat in a report on Monday, July 13th. They set a "hold" rating on the stock. Finally, Zacks Research upgraded Telesat from a "strong sell" rating to a "hold" rating in a research note on Monday, October 19th. Three analysts have rated the stock with a Buy rating, three have given a Hold rating and two have issued a Sell rating to the stock. According to MarketBeat, the company currently has a consensus rating of "Hold" and a consensus target price of $33.50.

Telesat Price Performance

TSAT opened at $40.09 on Friday. The company has a market capitalization of $610.13 million, a price-to-earnings ratio of -2.18 and a beta of 2.11. The company has a quick ratio of 0.17, a current ratio of 0.17 and a debt-to-equity ratio of 0.90. The firm has a 50-day moving average price of $45.62 and a 200-day moving average price of $42.65. Telesat has a twelve month low of $23.01 and a twelve month high of $61.54.

Telesat (NASDAQ:TSAT - Get Free Report) last announced its quarterly earnings results on Thursday, August 13th. The company reported ($7.85) EPS for the quarter, missing analysts' consensus estimates of ($0.71) by ($7.14). The business had revenue of $57.30 million for the quarter, compared to analysts' expectations of $56.11 million. Telesat had a negative net margin of 112.44% and a negative return on equity of 13.68%. Equities analysts expect that Telesat will post -11.93 EPS for the current year.

Institutional Inflows and Outflows

Several institutional investors have recently made changes to their positions in TSAT. Senvest Management LLC lifted its position in Telesat by 2.2% during the first quarter. Senvest Management LLC now owns 137,668 shares of the company's stock valued at $4,984,000 after purchasing an additional 3,000 shares during the last quarter. TD Waterhouse Canada Inc. raised its position in shares of Telesat by 18.0% during the 3rd quarter. TD Waterhouse Canada Inc. now owns 63,361 shares of the company's stock valued at $2,938,000 after buying an additional 9,653 shares in the last quarter. Walleye Capital LLC lifted its holdings in shares of Telesat by 210.1% during the 1st quarter. Walleye Capital LLC now owns 57,017 shares of the company's stock worth $2,064,000 after acquiring an additional 38,630 shares during the last quarter. Bank of America Corp DE lifted its holdings in shares of Telesat by 72.5% during the 1st quarter. Bank of America Corp DE now owns 34,794 shares of the company's stock worth $1,260,000 after acquiring an additional 14,626 shares during the last quarter. Finally, Van Berkom & Associates Inc. bought a new stake in shares of Telesat during the 1st quarter worth $991,000.

Key Stories Impacting Telesat

Here are the key news stories impacting Telesat this week:

• Positive Sentiment: Quarterly results exceeded expectations. Telesat reported earnings of C$1.00 per share, compared with consensus estimates for a loss of roughly C$0.69–C$0.72 per share. Revenue was approximately C$80.6 million, above FactSet’s C$77.1 million forecast, while reported U.S.-dollar revenue was $56.63 million versus a $54.13 million estimate. Telesat Surpasses Q3 Earnings and Revenue Estimates
• Positive Sentiment: Analyst support provided a counterpoint. ATB Cormark Capital Markets initiated or reiterated a “Buy” view on TSAT, potentially signaling confidence in Telesat’s long-term satellite-network opportunity and business prospects. Telesat Gets a Buy from ATB Cormark Capital Markets
• Neutral Sentiment: Management’s earnings call may be more important than the headline beat. Investors are focused on operating execution, satellite-network development and the company’s financing plans, since the unusually large earnings beat may not fully reflect recurring operating performance. Telesat Q3 2026 Earnings Call Transcript
• Negative Sentiment: Underlying profitability remains weak. Reports said Telesat’s third-quarter net loss widened, despite the EPS beat. The company continues to show a deeply negative net margin, increasing concern that the earnings result may have been affected by nonrecurring items rather than stronger core operations. Telesat Q3 Net Loss Widens
• Negative Sentiment: Debt repayment and liquidity are the central risks. Telesat is evaluating alternatives ahead of a December deadline to repay debt. With a very low current ratio and substantial financing needs, uncertainty over refinancing, asset sales or other funding measures likely outweighed the quarterly revenue and EPS beat. Telesat Evaluates Alternatives as Debt Deadline Looms

Telesat Company Profile

Telesat is a Canadian satellite communications operator that provides connectivity and related services to telecommunications companies, broadcasters, governments, enterprises and other organizations worldwide. The company operates a fleet of geostationary satellites and delivers satellite capacity for broadband communications, video distribution, enterprise networking, mobility and government applications.

In addition to its geostationary satellite services, Telesat is developing Telesat Lightspeed, a planned low Earth orbit satellite network designed to provide high-speed, low-latency broadband connectivity.

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