ViaSat VS-3 Satellite Launch Positions Company For Robust Growth, Says Analyst

While fundamentals remain strong across segments, ViaSat, Inc. VSAT appears positioned for robust growth with the launch of the VS-3 constellation, according to Raymond James.

The ViaSat Analyst: Ric Prentiss upgraded the rating for ViaSat from Outperform to Strong Buy, while maintaining the price target at $67.

The ViaSat Thesis: The first of three launches of the ViaSat-3 (VS-3) group is expected in the first quarter of 2022, Prentiss said in the upgrade note.

Heading into the launch, ViaSat is “effectively managing costs and capacity,” he added.

“In addition, as vaccines are rapidly distributed and administered, the In-Flight Connectivity (IFC) business should see continued recovery in conjunction with the return to relative normalcy,” the analyst wrote. He considers the concerns over potential competition from Low-Earth Orbit (LEO) constellations being overblown.

“On top of COVID-19 and LEO concerns, we believe non-fundamental fund flows have caused significant volatility that has driven the stock price down in recent weeks, presenting substantial upside at the moment,” Prentiss wrote.

VSAT Price Action: Shares of ViaSat had risen by 4.97% to $50.46 at the time of publication Thursday.

(Photo: Rendering of VS-3 via ViaSat)