Shares of satellite communications services provider Intelsat (I) are falling after Morgan Stanley maintained an Underweight rating on the stock in an investor note out Friday morning. Shares of Intelsat have almost quadrupled since early April on optimism over mid-band spectrum opportunities.
DEVIL IN THE DETAILS: On Friday morning, Morgan Stanley analyst Simon Flannery noted that at a recent tower show FCC Chairman Ajit Pai announced his intention to introduce a C-band Notice of Proposed Rulemaking at the Commission's July 12 meeting, adding that the agenda for that meeting is expected June 21. While Flannery said he expects the FCC will be generally supportive of the joint spectrum sharing proposal being made by Intelsat and Intel (INTC), he added, "the devil is in the details" and that the C-band opportunity does not displace the secular pressures on Intelsat's organic business. Flannery is raising his Intelsat valuation to reflect the increased likelihood of spectrum monetization and increased his price target on the stock to $6 from $1, but he maintains an Underweight rating on the stock given the ongoing pressures in the satellite business.
PRICE ACTION: Shares of Intelsat are down almost 10% in early trading on Friday to $16.12 per share.
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