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Friday - Cantor Fitzgerald analysts maintained a Neutral rating on ViaSat (NASDAQ:VSAT) with a steady price target of $12.00, above the current trading price of $9.52. According to InvestingPro data, the company operates with a significant debt burden, with a debt-to-equity ratio of 1.88. The firm’s assessment followed ViaSat’s third fiscal quarter 2025 earnings report and subsequent conference call. Analysts highlighted approximately $200 million in capital expenditure savings and positive management commentary on growth and debt reduction possibilities.
ViaSat’s conference call indicated a potential turn towards free cash flow positivity in the second half of fiscal year 2026, which has been a particularly encouraging sign for analysts. This would mark a significant shift from the current negative free cash flow yield of -47%. Cantor Fitzgerald noted that their own estimates might have been overly pessimistic compared to consensus figures from FactSet. Get access to more detailed financial insights and 8 additional key ProTips for VSAT with InvestingPro, including comprehensive analysis of the company’s financial health and growth prospects.
The firm expressed interest in gaining a better understanding of how ViaSat’s free cash flow targets will align with its ongoing satellite deployments, leverage reduction, and growth initiatives. Despite ViaSat’s significant market underperformance, with a -46.43% return over the past six months, analysts anticipate that the stock is poised for a rebound. The company has maintained revenue growth of 36.25% over the last twelve months, suggesting potential for recovery.
However, Cantor Fitzgerald cautioned that the concentrated risk associated with ViaSat’s future geostationary orbit (GEO) satellite launches could limit the extent of the stock’s potential outperformance. The firm plans to closely monitor ViaSat’s strategic moves and market position moving forward, with analyst targets ranging from $9 to $56, reflecting the market’s mixed outlook on the company’s prospects.
In other recent news, ViaSat Inc. reported a significant earnings beat for its fiscal third quarter, with adjusted earnings per share of $0.11, notably surpassing analyst estimates of a $0.61 loss per share. Revenue for the quarter was reported at $1.12 billion, showing stability compared to the same quarter last year, despite a slight miss on consensus estimates of $1.13 billion. The company’s Defense and Advanced Technologies segment saw a 20% revenue increase year-on-year, compensating for a 6% decline in the Communication Services segment.
These developments are part of recent trends for ViaSat. The company has maintained its full-year 2025 revenue and adjusted EBITDA outlook, backed by strong performance in aviation and defense over the first three quarters. The Defense and Advanced Technologies segment is anticipated to achieve mid-teens revenue growth for the full fiscal year.
Looking forward, ViaSat projects year-over-year revenue and adjusted EBITDA growth for fiscal 2026. The company also expects capital expenditures of approximately $1.3 billion for FY2026, signaling a transition to positive free cash flow in the second half of that fiscal year.
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