Inmarsat shows poor fundamentals as suggested by its Surperformance ratings. In facts, the company’s financial situation seems compromised. Debt has been increasing significantly over the past years. Thus, leverage should exceed three times EBITDA this year. Moreover, analysts keep revising downwardly their estimations for both revenue and EPS, reducing the outlooks for the group. Finally, the company is overvalued compared to its peers as shown by its P/E ratio of 28 for 2015 estimates.

From a technical viewpoint, the share evolves in a large trading range between GBp 669 and GBp 768. The recent contact with the upper bound of this range engaged some profit taking and a consolidation phase started. This movement could accelerate in the coming sessions towards GBP 700.

Therefore, a short position could be taken at the current price aiming at GBp 700. Nonetheless, a stop loss will be placed over the entry points avoiding any bullish overflow.