Space42 and Viasat announced Equatys, a shared space and ground infrastructure platform backed by up to $1 billion in combined equity. Viasat is positioned as the prime technology contractor, and initial funding accelerates a scalable constellation enabling direct-to-device satellite connectivity for smartphones and IoT. The venture targets growth in the non-terrestrial MSS market as 3GPP NTN standards mature.
Viasat posted Q2 results with EPS of $0.17, beating an expected loss of $0.30, while revenue came in at $1.16B, below a $1.20B consensus. The miss was driven by a 4% YoY decline in Defense and Advanced Technology; Communications Services was flat. Management cited ViaSat-3 progress and stronger awards, suggesting growth potential as the satellite program expands.
Viasat won a landmark Space Force contract moving the company from design into full production, signaling stronger defense revenue and backlog. The program covers a dual-band X/Ka-band mini-GEO satellite with ground stations and five years of operations support, within a $4 billion PTS-G ceiling across participating contractors. If follow-on awards materialize, VSAT could extend margins and backlogs in a higher-security communications market.
Analyst upgraded VSAT shares to Buy with a price target of $52. Viasat's stock rose 320% this year, showing strong investor interest. Launch of more satellites and potential spin-off of the defense business are key catalysts. The company's valuable wireless spectrum attracts significant investment attention. 50% of analysts rate Viasat shares as Buy, indicating positive market sentiment.
Carronade Capital suggests Viasat spin off its DAT segment for value. Viasat's share price underperformed by over 57% in recent years. DAT segment shows significant growth potential and high EBITDA margins. Viasat's Communications business is set to pivot away from lower-margin broadband. Carronade's analysis suggests a potential share price increase between 76%-304%.
Carronade Capital calls for Viasat to spin-off its DAT business. Communications segment faces pressure while DAT shows strong potential. Viasat's share price decreased significantly over the past few years. Carronade sees DAT value between $6.3 billion to $16.2 billion. Management hints at potential divestiture of DAT, aligning with Carronade's views.
