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The analysts told investors that after VSAT closed the acquisition of Inmarsat on May 31, they think the combined company brings “sufficient scale to compete in growing markets.”
They added that the acquisition brings a “complimentary portfolio of assets that should strengthen the company’s growing opportunity.”
However, while they are largely positive on the acquisition and the shift towards higher-margin service revenue, the recent complications with the launch of ViaSat-3 Americas “pose a meaningful headwind to the fixed broadband business.”
“The uncertainty around the satellite will remain an overhang on shares, if nothing else then pushing out any future Capex holiday,” said the analysts.
VSAT shares are down 4.8% Wednesday at the time of writing, trading below the $30 per share mark.
