ViaSat’s Mixed Financial Outlook and Strategic Opportunities Justify Hold Rating Amidst Competitive Pressures

William Blair analyst Louie DiPalma has reiterated their neutral stance on VSAT stock, giving a Hold rating on May 19.

Louie DiPalma has given his Hold rating due to a combination of factors influencing ViaSat’s current and future performance. Despite facing significant competition from SpaceX, ViaSat has secured notable contracts with major airlines like American Airlines, Etihad, and Riyadh Air, which reinforces its position as a leader in the satellite communications industry. Additionally, potential developments such as the $500 million settlement from the Ligado litigation and the growth prospects in the maritime sector, along with the launch of the remaining ViaSat-3 satellites, present opportunities for the company.
However, the company’s financial outlook remains mixed. While there was a 5% increase in adjusted EBITDA, revenue remained flat, and challenges persist in areas like global fixed broadband and maritime services. The reaffirmed guidance for 2026 indicates low single-digit revenue growth and flat EBITDA, with significant capital expenditures anticipated. The company’s net leverage remains high at 3.6 times, and positive free cash flow is not expected until the latter half of fiscal 2026. These factors contribute to the expectation that ViaSat’s shares will remain range-bound, justifying the Hold rating.

In another report released on May 19, Cantor Fitzgerald also maintained a Hold rating on the stock with a $12.00 price target.