This report is not a personal recommendation and does not take into account your personal circumstances or appetite for risk.
Trade Parameters
Technical Observations – For
Technical Observations – Against
Shares bouncing from the floor of a 3-month range following news of a partnership with Panasonic for exclusive supply of in-flight internet equipment. Analysts at Berenberg (20 Sept) are suggesting the deal supports medium-to -long-term revenue targets and is positive for Inmarsat because of higher margins and lower risk.
Company backed FY guidance in its latest H1 results (2 Aug), clarifying that financial results could be weighted toward the second half of the year. H1 revenue and EBITDA beat Berenberg forecasts.
Risks to Inmarsat shares include poor results in November, persistent Brexit uncertainty related to the UK leaving the European Union and its Galileo satellite project, and, of course, broker downgrades.
Brokers/analysts are predominantly neutral (67%) on the shares however, this makes sense if they are trading in a range. On the flip-side, 65% of broker targets suggest upside from current levels, to a consensus target of 572p, bang in-line with our target of revisiting the range ceiling and recent highs.
Next Event: Q3 Results, early November
Latest Broker 12-Month Consensus: 28% Buy, 67% Hold, 6% Sell (full breakdown on request)
Source: DowJones Newswires, Reuters News, Bloomberg or Company Press releases
| 1wk | 1m | 3m | 6m | 1yr | 2yr | 3yr | 4yr | 5yr | |
| Perf % | 2.6 | -8.0 | -7.5 | 36.6 | -18.7 | -27.8 | -49.3 | -31.1 | -28.7 |
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Prepared by Michael van Dulken, Head of Research