Cantor Fitzgerald raises ViaSat stock price target to $20 on Ligado settlement

Published 05/08/2025, 17:36
Cantor Fitzgerald raises ViaSat stock price target to $20 on Ligado settlement

Investing.com - Cantor Fitzgerald raised its price target on ViaSat (NASDAQ:VSAT) to $20.00 from $12.00 on Tuesday, while maintaining a Neutral rating on the satellite communications company ahead of its fiscal first-quarter 2026 earnings report. The stock has shown remarkable momentum, surging 138% year-to-date and 120% over the past six months.According to InvestingPro data, analysts maintain a consensus Hold rating on VSAT, with price targets ranging from $10 to $52.

The investment firm cited several positive factors supporting the stock’s recent performance, including ViaSat’s Ligado settlement on June 13, 2025, Digital Audio Television (DAT) sale activism on July 29, 2025, and competitor upgrades.

Despite the higher price target, Cantor Fitzgerald expressed caution regarding ViaSat’s upcoming geostationary satellite deployments and its long-term product trends compared to SpaceX’s Starlink service.

The firm highlighted concerns about SpaceX’s cost advantage, which it estimates could reach over 50% on a dollar-per-megabit-per-second basis, and noted that SpaceX is delivering significantly more low Earth orbit capacity per launch compared to ViaSat’s planned geostationary deployments.

ViaSat is scheduled to release its fiscal first-quarter 2026 earnings after market close on Tuesday.

In other recent news, Viasat has announced a significant development with its subsidiary, Inmarsat Global Ltd., reaching a settlement agreement with Ligado Networks and AST & Science. This agreement is expected to bring in $568 million for Viasat in fiscal year 2026, which the company plans to use to manage its near-term debt maturities. Additionally, Viasat’s stock received an upgrade from William Blair, moving from Market Perform to Outperform, following a tour of the company’s Carlsbad headquarters. The upgrade was driven by multiple catalysts that are anticipated to enhance the company’s stock prospects over the coming year.

A notable catalyst includes Viasat’s consideration of an IPO or spinoff of its defense technology business, a move influenced by pressure from activist investor Carronade Capital Management. Carronade, holding approximately 2.6% of Viasat shares, has been advocating for the separation of Viasat’s Defense and Advanced Technologies business, claiming it is undervalued and could be worth $50 per share on its own. The investment firm believes that separating the broadband and defense units could unlock up to $11 billion in value for both businesses. These developments highlight the strategic shifts Viasat is contemplating in response to investor pressures and market opportunities.

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