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ViaSat (VSAT) made it through our 'Fast-Paced Momentum at a Bargain' screen and could be a great choice for investors looking for stocks that have gained strong momentum recently but are still trading at reasonable prices.
Does ViaSat (VSAT) have what it takes to be a top stock pick for momentum investors? Let's find out.
Viasat looks undervalued compared to peers, yet current cash flow remains weak, due to heavy capex commitments and high leverage. Revenue mix is shifting toward recurring aviation and defense services, improving predictability, though growth still depends on flawless program execution. Sustained free cash flow and debt reduction are critical for a re-rating, but volatility will persist until satellite investments normalize.
I project continued EBITDA growth for VSAT, albeit at a slower pace than the past decade, reflecting sector headwinds and analyst expectations. Despite high debt, my conservative DCF model and peer comparisons suggest VSAT is undervalued relative to its sector, with upside potential. Valuation scenarios using 8x and 11x EV/EBITDA multiples yield target prices of $37 and $63 per share, both above current market levels.
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VSAT launches HaloNet, a modular multi-orbit network uniting space and ground systems for secure, real-time mission connectivity.
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ViaSat (VSAT) could be a great choice for investors looking to buy stocks that have gained strong momentum recently but are still trading at reasonable prices. It is one of the several stocks that made it through our 'Fast-Paced Momentum at a Bargain' screen.
The activist investor appreciates Viasat's Defense and Advanced Technologies business, dubbing it a 'crown jewel' that may be due for a spinoff or IPO.
For months, satellite communications company Viasat NASDAQ: VSAT was a classic battleground stock, attracting a significant number of investors betting against it. A long-standing narrative focused on the company's heavy debt load and the rising threat of competition.