Wells Fargo Upgrades ViaSat (VSAT) to Outperform
- Top 10 News for 5/23 - 5/27: Computer Sciences to Acquire Key Enterprise Asset; Bayer Makes Run at Monsanto; Twitter has 'Character' Change
- Wall Street puts finishing touch on best week since March
- Marketo (MKTO) Deal Talk to Force Microsoft's (MSFT) Big Wallet Into Action
- Thermo Fisher (TMO) to Acquire FEI Company (FEIC) in ~$4.2B Deal
- Valeant Pharma (VRX) Rejected Joint Takeda, TPG Takeover Approach - WSJ
Wells Fargo upgraded ViaSat (NASDAQ: VSAT) from Market Perform to Outperform with a price target of $70-$74 (from $65-$69).
Analyst Andrew Spinola said, "Viasat is one of the best positioned companies in satellite broadband, we think, but the business can be lumpy and sentiment on the stock swings greatly. Following disappointing sub adds last quarter and the low expectations heading into FQ4 results next Tuesday, we believe NT expectations for the business have been adequately reset. Sentiment on the stock was frothy heading into the Loral verdict, touching $75 on March 25, but has reversed since the announcement on April 24 despite Viasat prevailing."
"Sentiment and a lumpy business can create attractive buying opportunities in stocks, and we view this as one of those times for VSAT. The LT story driven by consumer and commercial aviation broadband, innovation in secure Ka-band communications, and substantial operating leverage off a large fixed cost base continues to be bright. We model an EBITDA CAGR of 23% through F18 and think the stock is very attractive at just 9x our F16E EBITDA (year-ending March 2016). Our new valuation range is $70-74, up from $65-69, which is 10-10.5x F16E EBITDA plus $2 for the Loral Verdict," he added.
Shares of ViaSat closed at $58.99 yesterday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Morgan Stanley Remains Sidelined on Ulta Salon (ULTA) - PT to $230
- Brean Capital Raises Price Target on PVH Corp. (PVH) Following 1Q Beat and Raise
- Ulta Salon (ULTA): ECommerce Could Add Another Leg Of Growth - Nomura
Create E-mail Alert Related CategoriesAnalyst Comments, Analyst EPS View, Analyst PT Change, Upgrades
Related EntitiesWells Fargo
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!