Inmarsat Gains as BofAML Sees Aviation Upside After Panasonic
2018-10-08 08:00:13.203 GMT
By Kasper Viita
(Bloomberg) -- Inmarsat climbs as much as 5.2%, leading the
Stoxx 600 telecom index, after BofAML reinstates the stock at
buy, saying that earnings estimates are bottoming out after
three tough years for the industry.
* Inmarsat-Panasonic deal last month represents “a material
shift” in narrative for the in-flight connectivity sector, and
could be the start of consolidation in a market previously
characterized by hypercompetitive pricing
* Deal indicates Panasonic sees Ka-band as the future; potential
supply constraints on Ku-band pose a question to airlines
whether they want to operate split fleets or not, and overall
will push people away from Ku and towards Ka, increasing
Inmarsat’s value
* Sets PT at 600p, above the average of 573.33p among 19
analysts surveyed by Bloomberg
--With assistance from William Canny.
To contact the reporter on this story:
Kasper Viita in London at kviita1@bloomberg.net
To contact the editors responsible for this story:
Celeste Perri at cperri@bloomberg.net
John Viljoen
2018-10-08 08:00:13.203 GMT
By Kasper Viita
(Bloomberg) -- Inmarsat climbs as much as 5.2%, leading the
Stoxx 600 telecom index, after BofAML reinstates the stock at
buy, saying that earnings estimates are bottoming out after
three tough years for the industry.
* Inmarsat-Panasonic deal last month represents “a material
shift” in narrative for the in-flight connectivity sector, and
could be the start of consolidation in a market previously
characterized by hypercompetitive pricing
* Deal indicates Panasonic sees Ka-band as the future; potential
supply constraints on Ku-band pose a question to airlines
whether they want to operate split fleets or not, and overall
will push people away from Ku and towards Ka, increasing
Inmarsat’s value
* Sets PT at 600p, above the average of 573.33p among 19
analysts surveyed by Bloomberg
--With assistance from William Canny.
To contact the reporter on this story:
Kasper Viita in London at kviita1@bloomberg.net
To contact the editors responsible for this story:
Celeste Perri at cperri@bloomberg.net
John Viljoen