News

JPMorgan analysts have downgraded shares of ViaSat (NASDAQ: VSAT) to a Neutral rating with a price target of per share. They believe that the recent acquisition of Inmarsat by ViaSat brings sufficient scale for the company to compete in growing markets. The acquisition also brings a complementary portfolio of assets that can strengthen the company’s growing opportunities.

However, the analysts have expressed concerns about the complications surrounding the launch of ViaSat-3 Americas. They believe that these issues pose a significant challenge to the fixed broadband business. The uncertainty related to the satellite will likely remain a burden on the company’s shares, potentially delaying any future Capex holiday.

As a result of these concerns, ViaSat shares have experienced a 4.8% drop, trading below the per share mark at the time of writing. Despite the positive aspects of the acquisition and the shift towards higher-margin service revenue, the issues surrounding ViaSat-3 Americas have dampened the overall outlook for the company.

It remains to be seen how ViaSat will address these complications and mitigate their impact on the fixed broadband business. Investors will closely monitor any updates or developments regarding the satellite launch and its implications for ViaSat’s future performance.

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