Telesat (NASDAQ:TSAT) Upgraded by Zacks Research to "Strong-Buy" Rating

Key Points

• Zacks Research upgraded Telesat to a "Strong-Buy", though analyst coverage is mixed—one Strong Buy, one Hold and one Sell—leaving an average rating of Hold and an average target price of $37.00.
• Shares traded around $47.79 (12‑month range $14.77–$55.69) with a market cap of about $709 million; Telesat reported a quarterly EPS loss of $0.97 that beat estimates but missed on revenue, and the company remains unprofitable with negative margins.
• Several institutional investors have materially increased stakes in the stock, and Telesat is advancing its Lightspeed LEO constellation as part of its growth strategy.

Telesat (NASDAQ:TSAT - Get Free Report) was upgraded by investment analysts at Zacks Research from a "hold" rating to a "strong-buy" rating in a report issued on Monday,Zacks.com reports.

TSAT has been the subject of several other research reports. Weiss Ratings reaffirmed a "sell (d+)" rating on shares of Telesat in a report on Wednesday, January 21st. Deutsche Bank Aktiengesellschaft raised their target price on Telesat from $19.00 to $37.00 and gave the stock a "hold" rating in a research report on Thursday, March 19th. Finally, Wall Street Zen lowered shares of Telesat from a "sell" rating to a "strong sell" rating in a report on Saturday, April 25th. One research analyst has rated the stock with a Strong Buy rating, one has assigned a Hold rating and one has issued a Sell rating to the company's stock. According to data from MarketBeat.com, the company currently has an average rating of "Hold" and an average target price of $37.00.

Telesat Trading Down 1.7%

Shares of TSAT stock opened at $47.79 on Monday. Telesat has a 12 month low of $14.77 and a 12 month high of $55.69. The company has a market cap of $709.20 million, a PE ratio of -6.32 and a beta of 2.02. The company has a quick ratio of 0.25, a current ratio of 0.25 and a debt-to-equity ratio of 0.66. The business's 50 day moving average is $40.23 and its two-hundred day moving average is $32.91.

Telesat (NASDAQ:TSAT - Get Free Report) last issued its quarterly earnings data on Tuesday, March 17th. The company reported ($0.97) earnings per share for the quarter, topping analysts' consensus estimates of ($1.05) by $0.08. The business had revenue of $68.48 million during the quarter, compared to analysts' expectations of $91.95 million. Telesat had a negative net margin of 37.25% and a negative return on equity of 1.10%. Equities analysts predict that Telesat will post -0.2 EPS for the current year.

Hedge Funds Weigh In On Telesat

Several institutional investors have recently bought and sold shares of the business. PenderFund Capital Management Ltd. lifted its position in Telesat by 307.3% during the 3rd quarter. PenderFund Capital Management Ltd. now owns 409,753 shares of the company's stock worth $10,512,000 after buying an additional 309,153 shares in the last quarter. Senvest Management LLC increased its stake in Telesat by 261.5% in the fourth quarter. Senvest Management LLC now owns 134,668 shares of the company's stock valued at $3,919,000 after purchasing an additional 97,411 shares in the last quarter. Millennium Management LLC boosted its holdings in shares of Telesat by 245.4% in the fourth quarter. Millennium Management LLC now owns 128,472 shares of the company's stock valued at $3,739,000 after buying an additional 91,272 shares during the period. Vestcor Inc increased its position in shares of Telesat by 40.0% during the third quarter. Vestcor Inc now owns 175,000 shares of the company's stock worth $4,638,000 after acquiring an additional 50,000 shares in the last quarter. Finally, Polar Asset Management Partners Inc. boosted its holdings in Telesat by 83.0% during the third quarter. Polar Asset Management Partners Inc. now owns 105,225 shares of the company's stock worth $2,779,000 after purchasing an additional 47,725 shares during the last quarter.

Telesat Company Profile

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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