CARLSBAD, Calif. - Viasat Inc. (NASDAQ: VSAT), a satellite communications company, has announced its partnership with Airbus Defence and Space to integrate its GAT-5530 broadband terminal into the Airbus C295 Maritime Patrol Aircraft for the Spanish Ministry of Defence. The GAT-5530, which operates on both Ku- and Ka-band frequencies, will provide the Spanish military with advanced satellite communications capabilities, enhancing their operational effectiveness.
The collaboration aims to bolster the Spanish C295 Maritime Patrol Aircraft fleet with secure, reliable, and resilient broadband satellite connectivity. The Viasat GAT-5530 terminal is designed to support a variety of missions, including command and control (C2) and intelligence, surveillance, and reconnaissance (ISR) applications. It will enable seamless roaming between sovereign and commercial networks, offering a level of resilience beyond traditional single-band or single-network solutions.
Senior Vice President of Viasat Government, Victor Farah, expressed enthusiasm about the expanded work with Airbus, emphasizing the trust and confidence placed in Viasat's ability to deliver enhanced mission connectivity solutions. The integration of the GAT-5530 terminal aims to significantly improve reliability and continuity for the Spanish Ministry of Defence across various operational environments.
The Airbus C295 is a versatile tactical airlifter, operated by 37 countries worldwide and having achieved 300 orders earlier this year. The addition of the GAT-5530 will strengthen its operational capability by supporting the entire ITU Ku- and Ka-bands, including 3.5GHz of commercial and military Ka-band. This multi-faceted terminal provides the Spanish Ministry of Defence and other military customers with significant operational flexibility.
Viasat is a global communications company committed to connecting people and things worldwide. Following the acquisition of Inmarsat (LON:ISA) in May 2023, Viasat has continued to develop its global communications network to deliver high-quality, secure, and affordable connections.
In other recent news, ViaSat (NASDAQ:VSAT), a global communications company, has seen varying analyst actions and entered into a strategic partnership. BofA Securities increased its price target on ViaSat shares from $24.00 to $28.00, maintaining a Buy rating, despite the company's guidance falling short of expectations due to challenges in the US fixed broadband business. Meanwhile, Deutsche Bank (ETR:DBKGn) reduced its price target to $22 from the previous $23 while keeping a Hold rating on the stock, citing a decreased growth trajectory for ViaSat, partly due to a reduced contribution from In-flight Connectivity (IFC) services.
Needham also adjusted its price target for ViaSat, lowering it to $28 from the previous target of $35, but sustained its Buy rating on the company's stock. On the partnership front, ViaSat announced a collaboration with Azercosmos, the national satellite operator of Azerbaijan, to extend satellite services in Azerbaijan and surrounding regions, leveraging ViaSat's L-band satellite capabilities.
InvestingPro Insights
As Viasat Inc. (NASDAQ: VSAT) forges ahead with strategic partnerships and technological advancements, the company's financial metrics and market performance provide a mixed picture. With a market capitalization of approximately $1.59 billion, Viasat is a significant player in the satellite communications industry. However, it's important to note that the company operates with a significant debt burden, as highlighted by one of the InvestingPro Tips, which could impact its financial flexibility.
The company's Price / Book multiple stands at a low 0.32, suggesting that the market may be undervaluing the company's assets relative to its share price. This could be an indicator for value investors that the stock is trading at a discount. Additionally, Viasat's revenue has shown impressive growth over the last twelve months as of Q4 2024, with an increase of 67.59%, reaching $4.28 billion. This substantial revenue growth may reflect the company's ability to expand its market presence and capitalize on new opportunities, such as the partnership with Airbus Defence and Space.
However, it's also crucial to consider that Viasat is not currently profitable, with analysts not anticipating profitability this year, and the company has been quickly burning through cash. This is further substantiated by an operating income margin of -17.3%, indicating the company is facing challenges in converting its revenue into operating income.
For investors interested in digging deeper into Viasat's financial health and future prospects, there are additional InvestingPro Tips available on https://www.investing.com/pro/VSAT. These include insights into earnings revisions, stock performance over various timeframes, and valuation multiples. To enhance your investment research, use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, unlocking a wealth of expert analysis and data.
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