UPDATE: Bank of America Initiates Buy Rating on Intelsat; Delevering Drives Equity Returns

In a report published on Tuesday, Bank of America analyst Michael J. Funk initiated coverage on Intelsat (NYSE: I) with a Buy rating and a $30 price target.

In the report, Bank of America reported that, "Returns to equity holders accrue through the deleveraging process, which is driven in large part by completed refinancing activity. Our forecasts imply FCF generation of 20% and 26% of Intelsat's market cap on a 2-year and 3-year basis, respectively."

Intelsat closed on Friday at $24.41