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Shares of satellite telecom company Intelsat (I) took off Wednesday after the company received an upgrade from JPMorgan and a boost to its target price on expectations its joint proposal with the so-called C-Band Alliance to use spectrum for mobile devices will win approval.

Intelsat stock jumped almost 9%, gaining $1.35 to $16.70, after JPMorgan analyst Philip Cusick upgraded the company to overweight from neutral and raised his one-year target price on the stock $27.

After being overly optimistic in the fall, the market is now "underpricing the likelihood" of Intelsat and the C-Band Alliance (CBA) eventually selling spectrum and "reaping substantial proceeds," Cusick said in a research note to clients.

Cusick further noted that the alliance still has the support of the Federal Communications Commission, and that a "market-based approach" to the proposal is likely to get the FCC's nod as early as mid-year, which will give U.S. wireless operators access to new "mid-band" spectrum that could accelerate the rollout of 5G services.

Formed by Intelsat, SES, Eutelsat and Telesat, the CBA is the entity behind the proposal to repurpose 'C-band' downlink spectrum to accelerate 5G adoption in the U.S. The C-Band alliance in late March appointed Peter Pitsch as Head of Advocacy and Government Affairs.

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