ViaSat (VSAT) Already Discounting American Airlines Win - Needham & Company

Needham & Company analyst Richard Valera thinks the likely American Airlines in-flight win that is driving share of ViaSat (NASDAQ: VSAT) higher is likely priced in.

As reported earlier, American is looking to cancel its Gogo (NASDAQ: GOGO) service on 200 planes, and presumably switch to ViaSat.

"Notwithstanding the tactical and strategic significance of what appears likely to be meaningful in-flight win for VSAT, we note VSAT shares are up 13% today and over 20% since the company hinted on its F3Q16 call last week that further in-flight wins could be imminent, and as such are likely discounting the American win and more," the analyst commented.

"While fans of the VSAT strategy, and impressed with the win, given the stock move and likely continued NT bandwidth issues as VSAT awaits VS-2 to come online in mid-'17, we remain on the sidelines," he added.

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 $62.45 yesterday.

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