ViaSat, Inc. (NASDAQ: VSAT) offers three types of bandwidth technologies and services: Satellite services, which provides businesses and commercial airlines with satellite-based high-speed broadband services; Commercial networks, which develops end-to-end communication and connectivity systems; and Government systems, which produces network-centric Internet Protocol-based secure government communication systems.
Why should Investors Book Profits?
Valuation Methodology: EV/EBITDA Multiple Based Relative Valuation
(Analysis by Kalkine Group)
* % Premium/(Discount) is based on our assessment of the company's NTM trading multiple after considering its key growth drivers, economic moat, stock's historical trading multiples versus peer average/median, and investment risks.
VSAT's share price has surged 24.42% in the past month and is currently leaning towards the mid-band of its 52-week range of USD 39.13 to USD 68.76. The stock is currently trading above its 50 and 200 DMA levels, and its RSI Index is at ~68.35, implying an overbought zone and indicating a correction in the stock price. We have valued the stock using the EV/EBITDA multiple based relative valuation methodology and arrived at a target price of USD 45.40.
Considering the surge in the stock price in the brief period, a decline in cash position and backlogs, leveraged balance sheet, current valuation, and other technical indicators, we recommend a "Sell" rating on the stock at the current price of USD 51.10, down 0.55% as of March 09, 2022, at 3:10 PM ET.
Three-Year Technical Price Chart (as of March 09, 2022, at 3:10 PM ET). Source: REFINITIV, Analysis by Kalkine Group
* The reference data in this report has been partly sourced from REFINITIV.
* All forecasted figures and industry information have been taken from REFINITIV.