UPDATE: Wunderlich Securities Downgrades ViaSat to Sell, Reiterates $47 PT Following Model Update

In a report published Tuesday, Wunderlich Securities analyst Matthew S. Robison downgraded the rating on ViaSat VSAT from Hold to Sell, but reiterated the $47.00 price target. In the report, Wunderlich Securities noted, “We have updated our model for ViaSat (VSAT) to include additional capacity from ViaSat-2. In addition to raw capacity, we expect ViaSat-2 to offer superior geographic coverage that will be a catalyst for aeronautical and maritime usage, as well as enhanced flexibility for more efficient capacity utilization. However, we increasingly believe that additional satellite capacity will be insufficient to overcome competitive threats or enable the company to grow long-term residential market share (beyond 2017). Therefore, we are not elevating our income forecast significantly or changing our $47 target but we are reducing our rating to Sell. We believe the current level is attractive for long sales, but the absence of near-term catalysts diminishes attractiveness as a short candidate.” ViaSat closed on Friday at $71.57.