UPDATE: Oppenheimer Downgrades ViaSat (VSAT) to Perform; Costs Growing Fast, Subs Growth Slow

August 3, 2012 7:54 AM EDT
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Price: $65.32 --0%

Rating Summary:
    2 Buy, 12 Hold, 3 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 0 | Down: 0 | New: 0
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(Updated - August 3, 2012 1:20 PM EDT)

Oppenheimer downgraded ViaSat (NASDAQ: VSAT) from Outperform to Perform.

Analyst, Yair Reiner, said, "In its first full quarter offering service on the new ViaSat-1 satellite, VSAT posted disappointing results. Gross subscriber adds of 66K fell below our base-case of 75K additions, while net adds of 20K likewise missed our base-case expectation of roughly 30K adds. While VSAT's target of adding 30-35K subs per month still seems within reach this summer, F1Q's underwhelming subscriber momentum suggests maintaining this pace could prove challenging once EchoStar (Nasdaq: SATS) launches its competing service in late September/early October. We still see significant long-term potential for VSAT in the large unserved and underserved broadband market. But we'd rather watch the story from the sidelines until there's better evidence of strong and sustainable sub add trends."

For an analyst ratings summary and ratings history on ViaSat click here. For more ratings news on ViaSat click here.

Shares of ViaSat closed at $37.75 yesterday.

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