Analysts have raised their price target for Viasat from approximately $24.29 to $26.14 per share. This reflects renewed optimism surrounding the company's valuable spectrum holdings, supported by recent market comparisons and performance updates.
Analyst Commentary
Recent research and market activity have prompted a variety of perspectives from Wall Street regarding Viasat's current valuation and future prospects. Analysts have cited both opportunities and risks that could affect the company's trajectory over the coming quarters.
Bullish Takeaways- Bullish analysts highlight Viasat's "elite" spectrum holdings. They point to recent market transactions that suggest these assets may be significantly undervalued on the balance sheet.
- Some believe the company’s international spectrum portfolio could be worth over $2 billion, offering an important strategic advantage and potential valuation uplift.
- Strong performance in emerging technology and aviation segments has contributed to recent upside and may provide leverage in key growth markets.
- There is potential for further upside if Viasat secures additional spectrum deals outside the United States. This could pave the way for transformative partnerships or new revenue streams.
- Bearish analysts see limited organic growth in Viasat's core satellite business as competition intensifies in the connectivity market.
- Despite an increase in price targets, valuation concerns persist, particularly if expected business breakups or major spectrum monetization events fail to materialize.
- Some analysts remain cautious due to ongoing uncertainty in certain payments and business segments, which could present execution risks.
- A lack of near-term catalysts for unlocking spectrum value outside the U.S. could limit stock upside, even as recent rallies have boosted optimism.
What's in the News
- Activist investor Carronade Capital urges Viasat to split off its defense unit and estimates up to $11 billion in additional value for shareholders (Financial Times).
- Amazon's Project Kuiper signs JetBlue as a customer, highlighting increased competition among satellite internet providers including Viasat and SpaceX (Wall Street Journal).
- Viasat announces the ViaSat-3 Flight 2 satellite launch in October 2025, which is expected to expand capacity and enhance performance for global customers.
- Space42 and Viasat plan to form Equatys, a joint venture aimed at enabling global Direct-to-Device (D2D) satellite communication services and supporting 5G network environments.
- Viasat secures a $252 million award from Australia and New Zealand for additional satellite services to expand the Southern Positioning Augmentation Network (SouthPAN).
Valuation Changes
- Consensus Analyst Price Target has risen from $24.29 to $26.14 per share. This reflects increased optimism about Viasat's underlying value.
- Discount Rate remains unchanged at 12.32%. This indicates consistent assumptions about risk and required returns.
- Revenue Growth estimates have increased marginally, moving from 2.91% to 2.91% per year.
- Net Profit Margin has fallen significantly, declining from 10.74% to 7.74% as projections for future profitability are revised downward.
- Future P/E Ratio has increased from approximately 9.41x to 14.72x. This signals higher earnings expectations relative to price or an anticipated adjustment in market valuation.
Disclaimer
AnalystConsensusTarget is a tool utilizing a Large Language Model (LLM) that ingests data on consensus price targets, forecasted revenue and earnings figures, as well as the transcripts of earnings calls to produce qualitative analysis. The narratives produced by AnalystConsensusTarget are general in nature and are based solely on analyst data and publicly-available material published by the respective companies. These scenarios are not indicative of the company's future performance and are exploratory in nature. Simply Wall St has no position in the company(s) mentioned. Simply Wall St may provide the securities issuer or related entities with website advertising services for a fee, on an arm's length basis. These relationships have no impact on the way we conduct our business, the content we host, or how our content is served to users. The price targets and estimates used are consensus data, and do not constitute a recommendation to buy or sell any stock, and they do not take account of your objectives, or your financial situation. Note that AnalystConsensusTarget's analysis may not factor in the latest price-sensitive company announcements or qualitative material.