Telesat Corporation (NASDAQ:TSAT) Receives Consensus Rating of "Reduce" from Analysts

Key Points

• Analysts rate Telesat “Reduce” overall: Of seven firms, three recommend selling, two advise holding and two recommend buying. The average 12-month price target is $33.50, below the stock’s reported $43.40 opening price.
• Telesat significantly missed quarterly earnings expectations, reporting a loss of $7.85 per share versus the consensus loss estimate of $0.71, although revenue of $57.3 million exceeded estimates.
• The company posted a negative net margin of 102.62% and negative return on equity of 15.53%; analysts expect a full-year loss of approximately $11.93 per share.

Telesat Corporation (NASDAQ:TSAT - Get Free Report) has received an average rating of "Reduce" from the seven ratings firms that are covering the company, Marketbeat.com reports. Three analysts have rated the stock with a sell rating, two have issued a hold rating and two have given a buy rating to the company. The average 12 month price objective among brokers that have issued a report on the stock in the last year is $33.50.

Several equities analysts have recently issued reports on TSAT shares. New Street Research began coverage on Telesat in a research note on Wednesday, May 13th. They issued a "sell" rating and a $30.00 price objective for the company. Weiss Ratings restated a "sell (d-)" rating on shares of Telesat in a research note on Thursday, June 18th. Zacks Research cut shares of Telesat from a "hold" rating to a "strong sell" rating in a report on Wednesday, August 19th. Scotiabank started coverage on shares of Telesat in a research note on Monday, July 13th. They issued a "hold" rating for the company. Finally, Stifel Nicolaus assumed coverage on shares of Telesat in a report on Thursday, July 16th. They set a "buy" rating for the company.

Telesat Stock Up 1.4%

Shares of NASDAQ TSAT opened at $43.40 on Tuesday. The stock has a market cap of $644.06 million, a P/E ratio of -2.43 and a beta of 2.07. The company has a current ratio of 0.17, a quick ratio of 0.17 and a debt-to-equity ratio of 0.90. Telesat has a 12-month low of $19.83 and a 12-month high of $61.54. The business's fifty day simple moving average is $44.42 and its 200-day simple moving average is $43.46.

Telesat (NASDAQ:TSAT - Get Free Report) last released its earnings results on Thursday, August 13th. The company reported ($7.85) EPS for the quarter, missing the consensus estimate of ($0.71) by ($7.14). Telesat had a negative return on equity of 15.53% and a negative net margin of 102.62%.The company had revenue of $57.30 million for the quarter, compared to analyst estimates of $56.11 million. As a group, equities analysts predict that Telesat will post -11.93 EPS for the current fiscal year.

Hedge Funds Weigh In On Telesat

Several large investors have recently bought and sold shares of TSAT. Allied Private Wealth LLC purchased a new stake in Telesat during the 2nd quarter worth about $51,000. Royal Bank of Canada increased its holdings in shares of Telesat by 32.2% in the 4th quarter. Royal Bank of Canada now owns 2,922 shares of the company's stock valued at $85,000 after acquiring an additional 712 shares during the last quarter. BNP Paribas Financial Markets raised its position in shares of Telesat by 1,335.3% during the 3rd quarter. BNP Paribas Financial Markets now owns 3,818 shares of the company's stock worth $101,000 after acquiring an additional 3,552 shares in the last quarter. Acadian Asset Management LLC raised its position in shares of Telesat by 63.3% during the 1st quarter. Acadian Asset Management LLC now owns 6,381 shares of the company's stock worth $119,000 after acquiring an additional 2,473 shares in the last quarter. Finally, Virtu Financial LLC purchased a new stake in Telesat during the fourth quarter worth approximately $211,000.

About Telesat

Telesat is a leading global satellite operator that designs, builds and delivers high-performance satellite communications solutions across multiple markets. The company operates a fleet of geostationary satellites to provide video distribution, data networking and managed broadband services to media companies, network operators, governments and enterprise customers. Telesat's infrastructure supports television distribution, cellular backhaul, rural broadband and corporate network applications.

In addition to its geostationary offerings, Telesat is developing a low Earth orbit (LEO) satellite constellation known as Lightspeed.

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