Why Gilat Satellite Networks (GILT) Is Up 16.7% After Securing Major US Army SATCOM Terminal Deal

• Gilat Satellite Networks announced that its subsidiary, Gilat DataPath, has secured over US$7 million in orders to supply advanced transportable SATCOM terminals to the U.S. Army, with deliveries planned for completion by year-end 2025.
• This substantial defense contract underscores the growing relevance of Gilat's technology in supporting mission-critical military communications and the company's role in addressing evolving security requirements.
• We'll examine how the recent U.S. Army contract underscores Gilat's strengthening presence in defense sector communications infrastructure.

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Gilat Satellite Networks Investment Narrative Recap

To see value in Gilat Satellite Networks, an investor needs confidence in the ongoing demand for secure, mission-critical satellite communications, especially in defense and government markets. The new US$7 million U.S. Army contract affirms Gilat's positioning as a supplier of rugged defense solutions and strengthens its order backlog, which remains the company's primary near-term catalyst. However, this contract alone does not significantly lessen ongoing margin pressure as the business mix continues to shift toward competitive, potentially lower-margin defense offerings.

Among recent announcements, the multimillion-dollar deal with Israel's Ministry of Defense from August 12 stands out. This earlier contract, also focused on SATCOM systems, reinforces Gilat's growing presence in defense infrastructure and shows resilience in government-related revenue, both important to supporting future earnings momentum while demand from commercial markets remains unsettled.

Yet, in contrast, investors should be particularly attentive to ongoing gross margin compression as revenue mix shifts and...

Read the full narrative on Gilat Satellite Networks (it's free!)

Gilat Satellite Networks' narrative projects $648.6 million revenue and $35.0 million earnings by 2028. This requires 22.9% yearly revenue growth and a $12.6 million earnings increase from $22.4 million today.

Uncover how Gilat Satellite Networks' forecasts yield a $11.00 fair value, a 23% downside to its current price.

Exploring Other Perspectives

Simply Wall St Community members assigned fair values for Gilat from as low as US$0.0001 to US$25.08, based on four distinct analyses. Despite recurring defense contract wins, concerns over sustained margin pressure could continue to shape performance expectations across the market's diverse viewpoints.

Explore 4 other fair value estimates on Gilat Satellite Networks - why the stock might be worth as much as 77% more than the current price!

Build Your Own Gilat Satellite Networks Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Gilat Satellite Networks research is our analysis highlighting 2 key rewards and 1 important warning sign that could impact your investment decision.
• Our free Gilat Satellite Networks research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Gilat Satellite Networks' overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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