ViaSat (NASDAQ:VSAT) received an upgrade from Deutsche Bank, with analysts raising the rating from Hold to Buy and increasing the price target to $15 from $13, pointing to a compelling risk/reward setup despite longer-term competitive concerns. Shares closed today with more than a 14% gain.
While the firm remains cautious about the communication services segment, especially in light of growing pressure from Starlink, Deutsche Bank sees multiple avenues for value creation through balance sheet improvement and strategic asset monetization.
Key catalysts include the potential sale or monetization of the company’s L-band spectrum, the Defense & Advanced Technologies (DAT) hardware business, and gains from the successful deployment of the ViaSat-3 F2 and F3 satellites. These initiatives could significantly reduce debt and unlock shareholder value.
Deutsche Bank notes that while these opportunities may take 12 to 18 months to fully materialize, the stock’s current valuation presents an attractive entry point, with the revised price target implying roughly 50% upside potential.