Broker snap: Substantial growth forecast at Avanti

11th Jan 2011 12:24

Equity research provider Equity Development values shares in UK-based satellite broadband group Avanti Communications at around twice the current level as the company is "now established as a credible operator in a growing market where demand far exceeds supply."Avanti sells satellite broadband services to telecoms companies which use them to supply residential, enterprise and institutional users. In November, the group successfully launched its HYLAS 1 geostationary satellite, which is the first superfast broadband satellite launched in Europe.With its first satellite in orbit, full funding is in place for the construction, launch and operation of its second satellite (HYLAS 2). Its third project has also begun (HYLAS 3), and Equity Development says that "Avanti is moving ahead to become a major player in this market."The broker's revenue estimate for 2011 stands at £5.2m, whereas the in 2012 it is expected to be £28.1m. The target price is 1,319p, more than double the current share price of around 620p.