In a report released today, Sebastiano Petti from J.P. Morgan maintained a Hold rating on ViaSat, with a price target of $23.00.
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Sebastiano Petti has given his Hold rating due to a combination of factors influencing ViaSat’s current market position and future prospects. The company has reported strong financial results, yet the focus remains on the strategic review of its DAT assets, which has attracted attention from activist investors. While there is potential for unlocking value through monetization of these assets, a spin-off or separation appears unlikely in the short term as the company prioritizes debt reduction and financial stability.
Additionally, the market has not fully recognized the value of ViaSat’s DAT assets, and concerns about competition from LEO constellations like Starlink persist. Despite these challenges, ViaSat’s defense business portfolio supports its valuation. The stock is considered fairly valued at present, with the price target set at $23, reflecting expected benefits from the Ligado settlement and projected EBITDA growth. This balanced outlook justifies the Hold rating, acknowledging both the company’s strengths and the uncertainties it faces.
In another report released yesterday, Cantor Fitzgerald also maintained a Hold rating on the stock with a $20.00 price target.