Needham cuts ViaSat stock price target to $85 on revenue concerns

JPMorgan analyst Sebastiano Petti reaffirmed ViaSat (VSAT) as the firm's top mid-cap telecom pick, lowering the price target to $120. Petti cited growth in the Defense and Advanced Technologies segment, with record backlog of $1.4B, and raised fiscal 2027 EBITDA estimates. However, the Communications Services segment faces near-term headwinds, leading to a lowered multiple and EBITDA estimate. Petti sees multiple paths to unlock shareholder value, including monetizing spectrum portfolio.

Viasat Inc. (NASDAQ:VSAT) secured a NASA contract for phase 1 of the NEXUS initiative, with a potential value of $460.9M. The company will develop a Ka-band space relay system to support legacy and future missions, aiming to transition NASA's space communications to commercial providers.

JPMorgan reduced its ViaSat (VSAT) price target to $120 from $130, keeping an Overweight rating. The stock trades at $63.95, with targets ranging from $49 to $140. ViaSat's Defense backlog hit $1.4B, and the company expects profitability this year. Recent Q2 results missed EPS and revenue estimates, but cash flow improved. Raymond James lowered its target to $95, citing caution on Communications Services.

Viasat has secured a $450M contract from the U.S. Space Force to build the Mission Operations Center for the Space Data Network. The center will manage data routing across satellite constellations, including SpaceX's Starshield. The contract is structured as an indefinite-delivery/indefinite-quantity agreement, allowing flexibility in scope. Viasat's software will enable real-time routing decisions, crucial for missile-warning systems.

Viasat, Inc. (VSAT) ranked 9th in a list of top satellite and space stocks held by billionaires. The company operates in communication services and defense, with recent growth from its ViaSat-3 satellites. Despite steady billionaire interest, Q2 2027 results showed a net loss of $129 million, up from $61 million a year prior, due to higher expenses. The stock has declined 36% from its post-IPO peak in June 2026.

Viasat reported Q2 aviation revenue up 8% with 4,490 commercial aircraft in service, but expects a decline in fiscal 2028. Maritime revenue fell 8% with 1,990 vessels in service. ViaSat-3 satellites are operational, and the company plans to stabilize fixed broadband. Viasat expects flat Communication Services revenue and mid-to-high teens growth in DAT revenue for the full year. The strategic review is ongoing, and Equatys, a planned mobile satellite venture, awaits regulatory approvals.