UPDATE: Bank of America Reduces PO to $38 on ViaSat on Pullback

Bank of America reiterates its Underperform rating on ViaSat

and decreases its price target from $46 to $38. Bank of America says, "We are lowering our PO to $38 from $46 in response to the recent pull back in market multiples. Our new PO is based on a 7.8x CY13E EV/EBITDA multiple. During a cycle VSAT tends to trade between 6x and 14.5x one calendar year forward EV/EBITDA. Given the recent uncertainty in the economic environment and the concerns many investors have on the status of filling ViaSat-1, we believe a more conservative multiple is warranted at this time. In our view 7.8x CY13 reflects the inherent risks." VSAT closed at $37.24 on Tuesday.