MicroVision MOVIA lidar gains support on NVIDIA DRIVE AGX platform
On Monday, Deutsche Bank (ETR:DBKGn)’s analyst Edison Yu upgraded ViaSat stock from Hold to Buy, setting a new price target of $15.00, up from the previous $13.00. The upgrade reflects the analyst’s view of the potential for ViaSat to increase its equity value through strategic financial moves. According to InvestingPro data, the stock is currently trading at an attractive Price/Book multiple of 0.29x, with analyst targets ranging from $10 to $56, suggesting significant potential upside. Yu noted that despite ongoing concerns about the competitiveness of ViaSat’s communication services business against rivals like Starlink, there are multiple opportunities for the company to improve its financial position. These opportunities include the monetization of assets such as its L-band spectrum and the DAT hardware business, which focuses on Defense & Advanced Technologies.
The analyst also pointed out the potential value to be gained from the successful launch and operation of two major satellites, ViaSat-3 F2 and F3. The process of realizing these gains is expected to unfold over the next 12 to 18 months. Yu’s assessment suggests that the current risk/reward profile of ViaSat shares is becoming more attractive, which has led to the decision to raise the price target by $2. This new target implies a roughly 50% upside potential from current levels.
ViaSat, listed on (NASDAQ:VSAT), is a company that specializes in satellite and digital communication technologies. It serves both commercial and defense markets, generating annual revenue of $4.5 billion with a robust 19% year-over-year growth. Want deeper insights? InvestingPro offers 12 additional key tips about ViaSat’s financial health and market position, along with comprehensive research reports that transform complex Wall Street data into actionable intelligence. The analyst’s comments indicate confidence in ViaSat’s ability to navigate challenges in its core business by leveraging its assets to strengthen its balance sheet.
The potential for asset monetization, as outlined by Deutsche Bank, could provide ViaSat with a more robust financial foundation, allowing for debt reduction and investment in future growth initiatives. The successful deployment of ViaSat-3 F2 and F3 satellites is considered a crucial factor in this strategy, as it could enhance the company’s service capabilities and market reach. InvestingPro analysis suggests the company’s valuation metrics and growth potential make it an interesting watch, with analysts predicting profitability this year despite current challenges.
The upgraded rating and price target by Deutsche Bank suggest a positive outlook for ViaSat stock in the medium term, as the company aims to execute its strategy and capitalize on its assets to drive shareholder value.
In other recent news, ViaSat Inc. reported impressive third-quarter earnings, significantly exceeding analyst expectations with an adjusted earnings per share of $0.11, compared to a projected loss of $0.61 per share. The company’s revenue for the quarter was $1.12 billion, slightly below the consensus estimate of $1.13 billion but stable year-over-year. ViaSat’s Defense and Advanced Technologies segment saw a 20% increase in revenue, which helped counterbalance a 6% decline in its Communication Services segment. Meanwhile, Deutsche Bank upgraded ViaSat from Hold to Buy, raising the price target from $13.00 to $15.00, based on potential strategic asset sales and successful satellite launches. The upgrade reflects confidence in ViaSat’s ability to enhance its equity value despite competition from Starlink. Cantor Fitzgerald maintained a Neutral rating with a $12.00 price target, noting ViaSat’s potential for free cash flow positivity in fiscal 2026. However, the firm cautioned about risks related to future satellite launches. Additionally, major shareholders of ViaSat, including Ontario Teachers and CPP, filed plans to sell a substantial number of shares, prompting concerns about changes in ownership structure.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.