JPMorgan analyst Philip Cusick downgraded Intelsat (I) to Underweight from Neutral without a price target.

The analyst sees little to no fundamental equity value in the shares given the details of Federal Communications Commission Chairman Ajit Pai's C-Band proposal. Pai unveiled his C-Band Order on Thursday which recommends accelerated relocation payments of up to $9.7B total to be split among the satellite operators, as well as move cost reimbursement of up to $5B, Cusick tells investors in a research note.

This is well below the analyst's prior estimate of ~$12B, net of move costs. Further, this comes over time rather than up front, rendering Intelsat's equity "worth little" given its $14B debt load and 9.6 times leverage, as well as its "very challenged" fundamental satellite business. Cusick, who sees no reason for bankruptcy in the near-term, believes Intelsat shares will likely fall from here. The stock closed Thursday up 2c to $3.74.