ViaSat (VSAT – Research Report), the Technology sector company, was revisited by a Wall Street analyst today. Analyst Ryan Koontz from Needham maintained a Buy rating on the stock and has a $35.00 price target.
Ryan Koontz’s Buy rating for ViaSat is based on a combination of factors that indicate a positive outlook for the company. Despite a forecast indicating a drop in both revenue and EBITDA for the fourth fiscal quarter, which is attributed to non-recurring items that inflated the third quarter, the company’s long-term prospects appear robust. Management has confirmed significant cost reductions totaling $100 million annually, with a focus on reducing headcount, starting from fiscal year 2025. Additionally, the expectation of revenue and cost synergies is anticipated to fuel growth in revenue and EBITDA, as well as generate positive free cash flow in the first half of calendar year 2025.
Furthermore, a substantial decrease in capital expenditures is expected for fiscal year 2025, offset by ~$770 million in anticipated insurance credits, which strengthens the financial position of the company. Consequently, Koontz’s projections for ViaSat’s revenue and EBITDA have been revised upwards by 4% and 9% respectively, reinforcing confidence in the company’s financial future. The maintenance of a $35 price target suggests that Koontz believes the stock is currently undervalued and presents an attractive opportunity for investors, supporting his Buy recommendation.
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Based on the recent corporate insider activity of 52 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of VSAT in relation to earlier this year.
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ViaSat (VSAT) Company Description:
ViaSat, Inc. provides communications technologies and services. It operates through following segments: Satellite Services, Commercial Networks and Government Systems. The Satellite Services segment provides satellite-based high-speed broadband services with multiple applications to consumers, enterprises, and mobile broadband customers (including commercial airlines and maritime vessels) both in the United States and abroad. The Commercial Networks segment develops and produces a variety of advanced satellite and wireless products, systems and solutions that enable the provision of high-speed fixed and mobile broadband services. The Government Systems segment provides global mobile broadband services to military and government users, and develops and produces network-centric Internet Protocol (IP)-based fixed and mobile secure communications products and solutions. The company was founded on May 1, 1986 by Mark D. Dankberg and Mark J. Miller and is headquartered in Carlsbad, CA.
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