Bank upgrades Viasat forecasts

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Investment bank Jefferies has updated its trading model for California-based satellite operator Viasat, and upgraded its revenue forecasts for Viasat (by 10.8 percent per annum) for the period 2021-2024.

As to the share price, Jefferies has upped the price target from $46 per share to a much more buoyant $57.50 (and even to $60 on its trading “upside” model).

“Our upgrade in revenue is driven predominantly by changes in estimates to Satellite Service (in turn, the first-time inclusion of EBI and a rebound in In-Flight Connectivity revenue) and Commercial Networks,” says Jefferies.

“Our growth expectations are consistent with the FY21-23 growth guidance for revenue (20 per cent average) and EBITDA (“mid-teens” average). Valuation: Our methodology remains unchanged (DCF-based),” adds Jefferies.

The revenue improvements on Jefferies model for Viasat are notable, and by 2024 the bank estimates that Viasat’s revenues could be at $3.445 billion (from the bank’s previous estimates of $3.116 billion.


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