Telesat Corporation (NASDAQ:TSAT) Stock Has Average Price Target of $33.50 According to Brokerages

Key Points

• Analysts are broadly bearish on Telesat: The stock has an average “Reduce” rating from seven firms, including three sells, two holds and two buys. The average 12-month price target is $33.50, below the reported opening price of $40.86.
• Telesat reported a significant earnings miss: Quarterly EPS came in at negative $7.85 versus the consensus estimate of negative $0.71, although revenue of $57.3 million slightly exceeded expectations.
• The stock faces notable financial and performance pressures: Shares were down 9%, while the company reported a negative net margin of 102.62% and analysts expect a full-year loss of $11.93 per share. Several institutional investors nevertheless increased their holdings.

Telesat Corporation (NASDAQ:TSAT - Get Free Report) has earned an average rating of "Reduce" from the seven ratings firms that are currently covering the company, Marketbeat.com reports. Three equities research analysts have rated the stock with a sell rating, two have assigned a hold rating and two have assigned a buy rating to the company. The average 1-year price objective among brokers that have issued ratings on the stock in the last year is $33.50.

TSAT has been the subject of several recent research reports. Zacks Research lowered shares of Telesat from a "hold" rating to a "strong sell" rating in a report on Wednesday, August 19th. Stifel Nicolaus began coverage on Telesat in a research note on Thursday, July 16th. They issued a "buy" rating on the stock. Scotiabank assumed coverage on Telesat in a research note on Monday, July 13th. They issued a "hold" rating on the stock. Royal Bank Of Canada initiated coverage on Telesat in a research report on Thursday, August 27th. They set a "moderate buy" rating for the company. Finally, Weiss Ratings reaffirmed a "sell (d-)" rating on shares of Telesat in a research report on Monday, September 14th.

Telesat Stock Down 9.0%

NASDAQ:TSAT opened at $40.86 on Wednesday. The firm's 50-day moving average price is $46.68 and its 200-day moving average price is $46.74. The company has a market capitalization of $621.89 million, a PE ratio of -2.28 and a beta of 2.11. The company has a debt-to-equity ratio of 0.90, a current ratio of 0.17 and a quick ratio of 0.17. Telesat has a 1-year low of $23.01 and a 1-year high of $61.54.

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

Institutional Investors Weigh In On Telesat

Institutional investors have recently modified their holdings of the stock. Walleye Capital LLC raised its position in shares of Telesat by 210.1% in the 1st quarter. Walleye Capital LLC now owns 57,017 shares of the company's stock worth $2,064,000 after purchasing an additional 38,630 shares during the last quarter. TD Waterhouse Canada Inc. boosted its stake in Telesat by 127.3% in the 2nd quarter. TD Waterhouse Canada Inc. now owns 53,708 shares of the company's stock worth $2,516,000 after purchasing an additional 30,076 shares in the last quarter. Van Berkom & Associates Inc. purchased a new stake in Telesat during the 1st quarter valued at about $991,000. Militia Capital Management LLC purchased a new stake in Telesat during the 1st quarter valued at about $560,000. Finally, Bank of America Corp DE grew its position in Telesat by 72.5% during the 1st quarter. Bank of America Corp DE now owns 34,794 shares of the company's stock valued at $1,260,000 after purchasing an additional 14,626 shares during the last quarter.

Telesat Company Profile

Telesat is a Canadian satellite operator that provides communications services to customers worldwide. Founded in 1969 and headquartered in Ottawa, Ontario, the company operates a fleet of geostationary satellites and related ground infrastructure designed to support broadband connectivity, broadcasting, enterprise communications, mobility and government applications.

Telesat serves telecommunications companies, broadcasters, content providers, governments and other organizations across North America and international markets.

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