Needham & Company Downgrades ViaSat (VSAT) to Hold

Needham & Company downgraded ViaSat (NASDAQ: VSAT) from Buy to Hold.

Analyst Richard Valera states, "As VSAT showed in its 1QF15 as it posted zero net sub adds, it is likely to get increasingly challenging to add net subscribers over the next 1.5-2 years as the company's high demand spot beams fill and it awaits ViaSat-2. Acknowledging that the company's new higher bandwidth promotions will improve its ability to attract subs, as seen in 2Q, we expect this will have diminishing returns as more beams fill. While we remain appreciative of the long-term ViaSat story and the new leg of growth that ViaSat-2 should bring to the model, with the shares up ~25% from their post 1Q-lows, trading at ~11x EV/F16 EBITDA, and exceeding our prior PT, we see the shares as fairly valued and we move to a Hold rating."

For an analyst ratings summary and ratings history on ViaSat click here. For more ratings news on ViaSat click here.

Shares of ViaSat closed at $65.39 yesterday.

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