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Viasat experienced a significant rise in its stock value on Monday, following a favorable recommendation from Deutsche Bank. The satellite communications company, which competes with Starlink, saw its shares surge over 13% during afternoon trading after analyst Edison Yu upgraded the stock from a hold to a buy.
In his report, Yu highlighted the potential for Viasat to enhance its equity value by strategically reducing its debt through asset monetization. He indicated that while the results of these efforts might take between 12 to 18 months to manifest, the current risk versus reward profile for investors appears increasingly appealing.
However, Yu also expressed caution regarding the long-term impact of Starlink on Viasat’s core communications segment, noting that Starlink has been aggressively expanding its market reach in various regions. Recent developments include securing partnerships with major Indian telecom companies, such as Reliance’s Jio and Bharti Airtel, aimed at launching Starlink’s services throughout India. Additionally, Starlink commenced its services in Indonesia in May 2024.
Despite these challenges, Yu’s positive outlook coincides with a notable upward trajectory for Viasat’s stock in 2025. Year-to-date, the shares have seen a growth of approximately 30%, significantly outpacing the S&P 500, which has recorded a more than 2% decline during the same timeframe. In just this month, Viasat’s stock has climbed over 25%.
As the market continues to evolve, Viasat’s strategic moves and market dynamics with competitors will be crucial factors to monitor moving forward.
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