Shares of Intelsat S.A. jumped 13% in premarket trading Wednesday, bouncing after a 55% plunge in two days, after Raymond James analyst Ric Prentiss turned bullish on the satellite communications company, citing improved valuation after the “dramatic” pullback. Prentiss raised his rating to outperform from market perform, and set a stock price target of $12, which is nearly double Tuesday’s closing price of $6.09. The stock’s plunge this week, and the 76% selloff so far this month, after the FCC chose a public auction for 5G spectrum over a private auction, and a Senate committee followed by introducing a bill Monday requiring at least 50% of the proceeds from the auction go to the U.S. Treasury. Prentiss said a final outcome of 50% going to Treasury was unlikely, as it would “probably” lead to litigation, and given previous FCC-run spectrum auctions have included government stakes of about 20% to 40%. Therefore, “given the recent dramatic pullback,” he believes the risk-vs.-reward profile is now “more interesting.” The stock has tumbled 71.5% year to date through Tuesday, while the S&P 500 has gained 24.5%.Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.
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