Needham analyst Ryan Koontz reiterated a Buy rating and $20.00 price target on Gilat Satellite Networks (NASDAQ: GILT).

The analyst commented: "GILT announced a major acquisition of the Space segment being divested from Comtech for $158MM. When closed, the deal will expand GILT's Defense exposure from 25% in F25 to 38% of total revenue. CMTL Space products will expand the GILT portfolio to include satellite modems, amps, and antennas and add many new customer and program relationships within the DoW, NASA, and international allies. GILT also acquires its promising terrestrial Troposcatter products which are seeing renewed demand. GILT will pay cash for the CMTL segment which is expected to add ~$195MM in annual revenue and adj. EBITDA of ~$17MM. We see the deal highly aligned with Management's strategy to expand GILT's presence in the Defense sector."

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Shares of Gilat Satellite Networks closed at $14.30 yesterday.