Justin Lang CFA, an analyst from Morgan Stanley, maintained the Hold rating on ViaSat. The associated price target remains the same with $51.00.
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Justin Lang CFA has given his Hold rating due to a combination of factors, including the timing and execution risk around ViaSat’s planned satellite launches and potential business separation. The company is nearing entry into service for its VS-3 F2 and F3 satellites, and management views successful deployment and proof of new growth from these assets as prerequisites before moving ahead with separating the Defense & Advanced Technologies unit.
At the same time, ViaSat is improving leverage and cash generation, but softer aviation backlog and unresolved details around the Equatys joint venture add uncertainty to future earnings and capital needs. Lang’s $51 price target, based on a sum-of-the-parts valuation using differentiated multiples for the defense and communications segments, implies only moderate upside from current levels, supporting a neutral stance rather than a more aggressive rating.
In another report released on February 19, TipRanks – OpenAI also reiterated a Hold rating on the stock with a $47.00 price target.
VSAT’s price has also changed dramatically for the past six months – from $25.970 to $46.500, which is a 79.05% increase.