William Blair analyst Louie DiPalma has maintained their neutral stance on VSAT stock, giving a Hold rating on June 2.
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Louie DiPalma has given his Hold rating due to a combination of factors impacting ViaSat’s financial and competitive landscape. The recent settlement with Ligado, which involves significant lump-sum and quarterly payments, provides ViaSat with an opportunity to improve its balance sheet by reducing its substantial net debt. This settlement is viewed positively as it aligns with ViaSat’s strategy to leverage its under-utilized global L-band spectrum assets, potentially opening up similar deals internationally.
However, despite these positive developments, ViaSat faces ongoing challenges from fierce competition, particularly from Starlink, across various markets including residential, maritime, aviation, and government sectors. This competitive pressure is expected to keep ViaSat’s stock price within a certain range over the long term, justifying the Hold rating. Additionally, there is potential for ViaSat to divest assets like TrellisWare to further manage its debt, but the overall competitive environment tempers the outlook.
According to TipRanks, DiPalma is an analyst with an average return of -8.8% and a 63.33% success rate. DiPalma covers the Technology sector, focusing on stocks such as Palantir Technologies, Motorola Solutions, and ViaSat.
In another report released on June 2, J.P. Morgan also maintained a Hold rating on the stock with a $10.00 price target.