Deutsche Bank downgrades Viasat stock to Hold as shares surge 185%

Published 07/08/2025, 14:46
Deutsche Bank downgrades Viasat stock to Hold as shares surge 185%

Investing.com - Deutsche Bank (ETR:DBKGn) downgraded Viasat (NASDAQ:VSAT) from Buy to Hold while raising its price target to $28.00 from $18.00 following the stock’s 185% surge since March. The stock has delivered an impressive 227% return year-to-date and is currently trading near its 52-week high of $28.59. According to InvestingPro data, the stock appears fairly valued based on its Fair Value analysis.

The significant stock appreciation, which outpaced NASDAQ’s 18% gain during the same period, has created what Deutsche Bank views as a more balanced risk/reward profile going forward.

Deutsche Bank noted that the investment thesis appears to be shifting from a value unlock with "low-hanging fruit" to a growth story centered around a "New Space/Defense Tech type of asset."

While the bank acknowledged potential additional value from a possible spin-off or sale of Viasat’s DAT business, as discussed on the company’s recent earnings call, it cautioned that "any meaningful action will still take time" given the complex nature of the business unit and its debt structure.

Deutsche Bank also highlighted the need to monitor potential delays in the launch of ViaSat 3 F2 and F3 satellites, though its financial forecasts for the company remain largely unchanged despite the price target increase.

In other recent news, Viasat Inc. reported its first-quarter fiscal year 2026 earnings with revenue reaching $1.17 billion, surpassing the forecasted $1.13 billion. Despite a net loss, the revenue growth positively influenced investor sentiment. JPMorgan responded to these strong results by raising Viasat’s stock price target from $10 to $23, maintaining a Neutral rating. The firm highlighted the ongoing strategic review of Viasat’s Defense and Aerospace Technologies (DAT) assets. JPMorgan suggested that while monetization of the DAT segment could unlock additional value, a spin-off or separation is not expected soon. The company’s strategic advancements have also drawn attention from activist investors. These developments reflect Viasat’s efforts to enhance its market position and financial performance.

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