UPDATE: Needham & Company Starts ViaSat (VSAT) at Buy

June 21, 2021 4:08 PM EDT
Get Alerts VSAT Hot Sheet
Price: $32.38 -0.74%

Rating Summary:
    6 Buy, 8 Hold, 3 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 5 | Down: 14 | New: 17
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(Updated - June 21, 2021 4:21 PM EDT)

Needham & Company analyst Ryan Koontz initiates coverage on ViaSat (NASDAQ: VSAT) with a Buy rating and a price target of $54.00.

The analyst commented, "We initiate coverage of VSAT with a Buy rating and $54 price target. VSAT plans to launch and operate three ViaSat3 satellites over C2022-C2023. We expect recent IFC wins to support a resumption of revenue growth in F22 and look for new international services and government segments to augment top-line strength. The expense of launch and turn-up will be a headwind to the operating margin, we estimate, but we anticipate steady improvement after the up-front costs are incurred. Despite the looming competitive threat from LEO operators in some segments, we see a well-managed core business poised to deliver solid results.

We model revenue growth in F22/F23 of 23%/12% with reduced operating leverage until the launches are complete. Our price target of $54 is equivalent to an EV/EBITDA multiple of 8.0x our C22 estimate."

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 $46.88 yesterday.

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