Viasat Stock Pops On Analyst Upgrade, Retail Sentiment Edges Up

Analysts at Deutsche Bank said they see multiple paths for Viasat to create equity value for shareholders. One of these includes asset monetization to deleverage the balance sheet materially.

Shares of Viasat Inc. (VSAT) rallied on Monday to end the regular trading session with gains of over 14% after analysts at Deutsche Bank upgraded the company.

According to The Fly, Deutsche Bank upgraded Viasat to ‘Buy’ from ‘Hold’ while hiking the price target to $15 from $13. This implies an upside of 34% from Monday’s closing price.

The brokerage said it sees multiple paths for Viasat to create equity value for shareholders. One of these paths includes asset monetization to deleverage the balance sheet materially.

Despite the upgrade, Deutsche analysts believe Viasat’s core business of communication services is under the cloud of Elon Musk-led SpaceX’s Starlink satellite internet service.

With a forward price-to-earnings (PE) multiple of 14.2, the brokerage believes the Viasat stock is “increasingly compelling.”

Viasat’s third-quarter performance came in below Wall Street expectations, with the company missing both revenue and earnings estimates.

Further, Viasat also posted a 6% decline in revenue from its core communication services business due to a fall in revenue from maritime services. 

Ahead of its Q3 results, the company announced its subsidiary bagged a contract from Maersk to upgrade its fleet’s maritime connectivity.

Retail sentiment on Stocktwits around Viasat gathered steam, hovering in the ‘bullish’ (70/100) territory at the time of writing.

One user thinks Viasat will be on the radar today.

Another expressed relief about the company “finally” receiving an upgrade.

Viasat’s stock has gained over 31% year-to-date.

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