UPDATE: Needham & Company Starts ViaSat (VSAT) at Buy
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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."
Shares of ViaSat closed at $46.88 yesterday.
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