The Share Centre adds Inmarsat to its buy list

Sheridan Admans, investment research manager at The Share Centre, upgrades satellite operator Inmarsat to a ‘buy' following positive Q3 results this week. Here's why;

"Inmarsat published a good set of interim results in early August on strong subscriber uptake and the traction gained from its pricing initiatives, which was again reflected in its Q3 results this week. However, earnings fell short of analyst expectations despite momentum building for its new services and a strong quarter for its maritime operations. Inmarsat believes it is well positioned to meet revenue targets for this year and next year.

"Growth seeking investors will be pleased to hear the deployment of three Ka-band satellites is on target for 2013 to 2014. This development aims to deliver seamless global coverage at speeds of up to 50MB/s for users in governments, maritime, energy, enterprise and aviation sectors and should help Inmarsat maintain a competitive edge with faster broadband speeds.

"We have added Inmarsat to our ‘buy' list as it is starting to look like it has turned a corner. Tentative signs that the US and Chinese economies are showing signs of stabilising also support our recommendation. The company is attractive for income seekers as it intends to raise its interim dividend to 16.94 cents, up 10% on the same period last year."