Telesat Corporation (NASDAQ:TSAT) Stock Rated "Reduce" by Wall Street Brokerages

Key Points

• Analysts give Telesat a consensus “Reduce” rating: Of seven analysts, three recommend selling, two advise holding and two recommend buying. The average 12-month price target is $33.50, below the stock’s reported $48.21 opening price.
• Telesat reported a significant earnings miss: The company posted a quarterly loss of $7.85 per share versus the $0.71 consensus loss estimate, despite revenue of $57.3 million slightly exceeding expectations.
• Financial performance remains weak: Telesat reported a negative net margin of 102.62% and analysts expect a full-year loss of $11.93 per share, while several institutional investors recently initiated or increased positions.

Telesat Corporation (NASDAQ:TSAT - Get Free Report) has been given an average recommendation of "Reduce" by the seven analysts that are presently covering the stock, Marketbeat.com reports. Three analysts have rated the stock with a sell recommendation, two have assigned a hold recommendation and two have issued a buy recommendation on the company. The average twelve-month price objective among brokerages that have issued ratings on the stock in the last year is $33.50.

Several analysts recently commented on the company. Royal Bank Of Canada assumed coverage on Telesat in a research report on Thursday, August 27th. They issued a "moderate buy" rating on the stock. Stifel Nicolaus started coverage on Telesat in a report on Thursday, July 16th. They set a "buy" rating on the stock. Weiss Ratings reaffirmed a "sell (d-)" rating on shares of Telesat in a report on Monday, September 14th. Zacks Research lowered shares of Telesat from a "hold" rating to a "strong sell" rating in a research report on Wednesday, August 19th. Finally, Scotiabank started coverage on shares of Telesat in a research note on Monday, July 13th. They set a "hold" rating on the stock.

Telesat Stock Performance

Telesat stock opened at $48.21 on Friday. 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 12 month low of $23.01 and a 12 month high of $61.54. The company has a fifty day moving average price of $46.16 and a two-hundred day moving average price of $45.64. The company has a market cap of $715.44 million, a PE ratio of -2.69 and a beta of 2.06.

Telesat (NASDAQ:TSAT - Get Free Report) last announced its quarterly earnings data on Thursday, August 13th. The company reported ($7.85) earnings per share 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 the consensus estimate of $56.11 million. Telesat had a negative net margin of 102.62% and a negative return on equity of 15.53%. Research analysts expect that Telesat will post -11.93 earnings per share for the current year.

Institutional Inflows and Outflows

A number of hedge funds have recently made changes to their positions in the stock. Allied Private Wealth LLC acquired a new stake in Telesat in the 2nd quarter valued at about $51,000. Royal Bank of Canada lifted its stake in Telesat by 100.2% during the first quarter. Royal Bank of Canada now owns 5,850 shares of the company's stock valued at $212,000 after buying an additional 2,928 shares in the last quarter. Engineers Gate Manager LP purchased a new stake in Telesat during the second quarter valued at about $591,000. Militia Capital Management LLC acquired a new position in shares of Telesat in the first quarter worth about $560,000. Finally, Van Berkom & Associates Inc. acquired a new position in shares of Telesat in the first quarter worth about $991,000.

About Telesat

Telesat is a Canadian satellite operator that provides communications services to customers worldwide. Founded in 1969 and headquartered in Ottawa, the company operates geostationary satellites under the Telstar brand and delivers connectivity for telecommunications companies, broadcasters, enterprises, governments and other institutional users.

The company's services include satellite capacity, broadband connectivity, enterprise networking, video distribution and communications solutions for government and maritime customers.

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