Q: Hello, what are your thoughts on this company at current price valuations and its prospects over next five plus years.
5i Research Answer:
TSAT has seen great momentum in the recent months amid strong earnings and positive news flow. It is a $1.2B company that can benefit from its Lightspeed Low Earth Orbit (LEO) satellite constellation, which can deliver high-speed, low-latency broadband services. Although, its sales growth has been negative over the past few years, its margins are just beginning to improve, and over the last 12 months it has negative free cash flows. It does face competition from SpaceX and Amazon in the LEO market, but if it can execute on its tech, we could see substantial growth in this name. We think it looks interesting, but we would like to see further progress on sales growth.