Inmarsat (ISAT)

Sector:

Telecom Operators

Index:

FTSE 250

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418.40p
   
  • Change Today:
      6.50p
  • 52 Week High: 632.20p
  • 52 Week Low: 336.40p
  • Currency: UK Pounds
  • Shares Issued: 462.62m
  • Volume: 1,026,547
  • Market Cap: £1,935.59m
  • RiskGrade: 186
  • Beta: 1.16

JPMorgan cuts target price on Inmarsat on maritime woes

By Iain Gilbert

Date: Friday 19 Oct 2018

LONDON (ShareCast) - (Sharecast News) - JPMorgan Cazenove took a fresh look at Inmarsat ahead of the satellite operator's third-quarter results on 8 November, where it expected "robust" financials but is beginning to get worried about stiffer maritime competition.
The broker felt the maritime unit was "entering shallow waters" and predicted a 0.3% year-on-year revenue decline, following the 0.1% increase in the second quarter.

On a more positive note, Cazenove, which reiterated its 'neutral' stance on Inmarsat's shares, believes the associated mid-term revenue downgrades appeared likely to be fully offset by aviation and enterprise upgrades, where revenues were projected to be ahead of consensus.

However, as this new balance is expected to produce an unfavourable margin mix, analysts lowered their EBITDA estimates 2% per year and cut its target price on Inmarsat to 615p from 650p.

"Whilst unhelpful, we believe the next six months will see investor attention shift to upcoming developments around the long-running L-band spectrum dispute."

Inmarsat, which connects 34,500 vessels with FleetBroadband via its L-band communications terminals, has urged the FCC to act promptly in approving partner Ligado Networks' proposal to deploy a terrestrial network using 40 MHz of mid-band spectrum in the 1500 MHz to 1700 MHz range.

Cazenove highlighted that, if Inmarsat's L-band spectrum was approved, and then subsequently acquired by a telco, there could be "even more substantial upside potential".

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Note 1: Prices and trades are provided by Digital Look Corporate Solutions and are delayed by at least 15 minutes.

Note 2: RiskGrade figures are provided by RiskMetrics.

 

Inmarsat Market Data

Currency UK Pounds
Share Price 418.40p
Change Today 6.50p
% Change 1.58 %
52 Week High 632.20p
52 Week Low 336.40p
Volume 1,026,547
Shares Issued 462.62m
Market Cap £1,935.59m
Beta 1.16
RiskGrade 186

Inmarsat Star Ratings

Compare performance with the sector and the market.
more star ratings
Key: vs Market vs Sector
Value
14.72% above the market average14.72% above the market average14.72% above the market average14.72% above the market average14.72% above the market average
75.00% above the sector average75.00% above the sector average75.00% above the sector average75.00% above the sector average75.00% above the sector average
Price Trend
16.42% below the market average16.42% below the market average16.42% below the market average16.42% below the market average16.42% below the market average
50.00% above the sector average50.00% above the sector average50.00% above the sector average50.00% above the sector average50.00% above the sector average
Income Not Available
Growth
92.24% below the market average92.24% below the market average92.24% below the market average92.24% below the market average92.24% below the market average
100% below the sector average100% below the sector average100% below the sector average100% below the sector average100% below the sector average

Inmarsat Dividends

  Latest Previous
  Interim Final
Ex-Div 13-Sep-18 19-Apr-18
Paid 19-Oct-18 25-May-18
Amount 8.00¢ 12.00¢

Trades for 07-Dec-2018

Time Volume / Share Price
17:02 100 @ 418.30p
17:02 1,713 @ 413.91p
16:35 404,404 @ 418.40p
16:29 441 @ 419.30p
16:29 66 @ 419.90p

Inmarsat Key Personnel

CEO Rupert Pearce
CFO Tony Bates

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