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ViaSat Soars 24% on Analyst's Prediction of Potential Stock Surge
4 Aug
Summary
- ViaSat stock jumps 24% after analyst upgrades to "outperform"
- Analyst predicts ViaSat shares could more than double in 12 months
- ViaSat considering spinning off its defense technology business
On August 4, 2025, ViaSat (NASDAQ: VSAT) saw its stock price jump 24% by 1 p.m. ET after a positive analyst report. William Blair analyst Louie DiPalma upgraded the satellite communications company to "outperform" and predicted ViaSat's shares could more than double over the next 12 months.
DiPalma's bullish outlook is based on a sum-of-the-parts valuation of ViaSat's business. The analyst noted that ViaSat is considering spinning off or conducting an IPO for its defense technology division, which accounts for around 27% of the company's revenue and all of its profits.
Additionally, DiPalma believes ViaSat is on track to turn free-cash-flow-positive later this year and is set to receive a $568 million payment in 2026. Once the company completes the launch of its final two ViaSat-3 satellites, it is expected to generate positive free cash flow, a key catalyst that could drive the stock price higher.
However, the analyst's prediction has been met with some skepticism, as ViaSat has not generated positive free cash flow since 2008, and most other analysts believe it will be 2027 before the company starts generating cash again. Nevertheless, the potential spinoff and satellite constellation completion appear to be fueling investor optimism around ViaSat's future prospects.
