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Investing.com - ViaSat (NASDAQ:VSAT) shares traded higher after William Blair reiterated an Outperform rating on the company, highlighting potential value in its spectrum holdings following AT&T’s $23 billion spectrum acquisition from EchoStar.
William Blair noted that AT&T’s (NYSE:T) deal to acquire 50 MHz of EchoStar (NASDAQ:SATS) spectrum licenses covering North America could prompt investors to take a sum-of-the-parts approach when valuing ViaSat , particularly considering its excess spectrum holdings and defense business.
The firm pointed out that ViaSat holds 68 MHz of L-band spectrum in many countries with "similar elite propagation characteristics" to the spectrum AT&T is acquiring. This spectrum is currently used for aviation cockpit safety, maritime communications, and defense broadband applications, though not all of it is fully utilized in all countries.
William Blair estimated ViaSat’s international spectrum holdings could be worth over $2 billion, noting this is significant relative to ViaSat’s market capitalization despite being a fraction of AT&T’s $23 billion EchoStar deal.
The research firm maintained that even after recent price increases, ViaSat shares still have "greater than 30% upside" over the next 12 months, citing multiple near-term catalysts beyond its spectrum assets. While currently unprofitable, InvestingPro data shows analysts expect the company to turn profitable in the coming fiscal year. Subscribers can access 13 additional ProTips and a comprehensive Pro Research Report for deeper insights into ViaSat’s financial health and growth prospects.
In other recent news, Viasat Inc. reported its first-quarter fiscal year 2026 earnings, revealing a revenue of $1.17 billion, surpassing the forecasted $1.13 billion. Despite a net loss, the revenue growth highlighted the company’s strategic advancements. In another development, JPMorgan raised its price target for Viasat to $23.00 from $10.00, maintaining a Neutral rating. The firm noted the strong quarterly results and the ongoing strategic review of Viasat’s Defense and Aerospace Technologies assets. Meanwhile, Deutsche Bank downgraded Viasat from Buy to Hold, raising its price target to $28.00, citing a more balanced risk/reward profile after a significant stock appreciation.
Additionally, Viasat introduced its HaloNet portfolio, which offers modular capabilities for unifying space and terrestrial connectivity services. This new system aims to provide simultaneous connectivity to thousands of space vehicles across various orbital inclinations. Furthermore, the company announced the upcoming retirement of James Dodd, the Senior Vice President and President of Commercial Services, effective around November 1, 2025. Mr. Dodd will remain with Viasat as a non-executive employee until the end of 2025.
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