Needham & Company analyst Richard Valera reiterated a Buy rating and lifted his price target on KVH Industries (NASDAQ: KVHI) to $18.00 (from $16.00) amid solid initial 2015 guidance.

Valera commented, "As its mini-VSAT service continues to add subs at a steady pace and its relatively nascent content businesses ramp, 2015 should be the year that KVH transitions to a majority recurring airtime/content revenue model, which we believe could carry with it a higher multiple for the stock. While frustrations with the company's historical struggles in delivering promised earnings leverage may make it somewhat of a "show me" story, with all of the major pieces for its service/content focused strategy in place, including its recently-launched IP MobileCast service, and no major bottom-line-diluting investments expected, we believe 2015 could be the year that KVH finally begins to deliver on its promise. We reiterate our Buy rating while increasing our PT to $18 (was $16), equivalent to 9.3x EV/C2016E EBITDA."

The firm raised FY 2015 EPS from $0.58 to $0.86 and set FY 2016 EPS at $1.10.

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Shares of KVH Industries closed at $13.21 yesterday.