VSAT Should I Buy
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Viasat Inc (VSAT) is not a strong buy at the moment for a beginner investor with a long-term horizon. While there are some positive developments, such as the company's advancements in satellite technology and potential monetization opportunities, the financial performance and overbought technical indicators suggest caution. The lack of strong proprietary trading signals further supports a hold recommendation.
The technical indicators show a bullish trend with MACD positively expanding and moving averages in a bullish alignment (SMA_5 > SMA_20 > SMA_200). However, the RSI is at 82.298, indicating the stock is overbought. The next resistance level is at 65.271, and the stock is currently trading near its pre-market price of 62.09.
Barclays and Deutsche Bank upgrades with higher price targets, citing potential monetization of spectrum and strategic reviews.
Advancements in satellite technology, including the AERA antenna, which could enhance future growth opportunities.
Financial performance shows a significant drop in net income (-115.76% YoY) and EPS (-114.63% YoY) in Q3
The core satellite business faces structural threats from new low orbit earth players.
Stock is overbought based on RSI, suggesting limited short-term upside.
In Q3 2026, revenue increased by 2.96% YoY to $1.157 billion, but net income dropped significantly by -115.76% YoY to $24.97 million. EPS also declined by -114.63% YoY to 0.18. Gross margin improved slightly to 27.13%, up 3.00% YoY.
Barclays upgraded the stock to Equal Weight from Underweight with a price target of $49, citing potential monetization of spectrum and strategic reviews. Deutsche Bank upgraded the stock to Buy from Hold with a price target of $48, highlighting the operationalization of two major satellites and a potential spinoff of the Defense and Advanced Technologies segment. Analysts are cautiously optimistic but highlight structural challenges in the core satellite business.
