Key insights
- New Street Research initiated ViaSat with a buy rating and a $100 price target, while Raymond James raised its target to $74. These positive ratings are tempered by concerns about competition from Starlink's LEO satellite service. Successful launch of ViaSat-3 F3 satellite is a positive catalyst. Overall, analyst sentiment is mixed, leading to a slightly positive but not strongly bullish outlook for US equities.
Investing.com - New Street Research initiated coverage on ViaSat Inc. (NASDAQ:VSAT) with a buy rating and set a price target of $100.00, the firm said Wednesday. The stock has surged 571% over the past year and currently trades at $70.58, near its 52-week high of $74.25.
The satellite communications company operates 23 GEO satellites and generates most of its revenue from aviation, maritime, and broadband services.
New Street Research expressed concern about potential pricing pressure and customer losses as Starlink offers more capacity through its LEO satellite service. The firm noted this competitive threat is already visible in recent announcements of airlines switching to Starlink.According to InvestingPro analysis, analysts predict the company will be profitable this year despite current challenges. For deeper insights, investors can access ViaSat’s comprehensive Pro Research Report, available for this and 1,400+ other US equities.
ViaSat is currently expanding its network capacity to address market demand.
The research firm’s initiation comes as the satellite communications industry faces increasing competition from low-earth orbit satellite providers.
In other recent news, Boeing successfully launched its ViaSat-3 F3 satellite aboard a SpaceX Falcon Heavy rocket from Kennedy Space Center. The launch took place at 10:13 a.m. ET, and the satellite separated from the rocket approximately five hours later. Boeing’s Mission Control team confirmed that the spacecraft is operating normally as it travels toward geostationary orbit. Meanwhile, Viasat also announced the successful launch of its ViaSat-3 F3 satellite, intended to provide coverage for the Asia-Pacific region. The initial signal acquisition was confirmed shortly after separation, indicating the satellite reached orbit as planned.
Additionally, Raymond James raised its price target on ViaSat stock to $74.00 from $50.00, maintaining an Outperform rating. The firm highlighted the value of ViaSat’s spectrum portfolio, estimating it could be worth approximately $16 billion. Raymond James also reiterated its Outperform rating on ViaSat, citing the satellite launch progress as a positive development. These recent developments mark significant milestones for both Boeing and Viasat in their satellite operations.
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