Added to YB: 2024-06-21
Pitch date: 2024-05-07
TSAT [bullish]
Telesat Corporation
+328.35%
current return
Author Info
No bio for this author
Company Info
Telesat Corporation, a satellite operator, provides mission-critical communications solutions to support the requirements of satellite users in Canada, the United States, Asia, Australia, Latin America, the Caribbean, Europe, the Middle East, and Africa.
Market Cap
$516.4M
Pitch Price
$7.02
Price Target
49.00 (+53%)
Dividend
N/A
EV/EBITDA
21.55
P/E
-3.16
EV/Sales
11.03
Sector
Diversified Telecommunication Services
Category
growth
Telesat Corporation - $TSAT
TSAT: GEO biz deteriorating w/ little equity value, but LEO progressing well w/ attractive financing terms & MDA deal. Unrestricted LEO sub valued at C$503M mkt cap (no debt, C$1.2B cash), assigns no value to C$540M PP&E, IP & regulatory approvals. Competing vs Amazon/SpaceX, but robust LEO demand & nat'l security/antitrust support smaller players. Q1 release catalysts: closing GoC financing & repurchasing ~$150M GEO debt at discount. DCF at 15% WACC = US$49/sh (similar to US$3B GoC warrant strike). Risks: execution, complex structure, tech obsolescence. Near-term upside from financing close, LEO IPO & more backlog.
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