ViaSat initiated with a Hold at Deutsche Bank

Deutsche Bank initiated coverage of ViaSat with a Hold rating and $22 price target. The analyst expects satellites to enable “fast and seamless connectivity across the globe for essentially all devices.” Viasat is competing in both broadband and narrowband following its recent acquisition of Inmarsat, the analyst tells investors in a research note. In the near-term, the firm believes the company’s underlying growth is “fairly robust,” driven by a strong backlog. However, these positives are overshadowed by ViaSat’s recent satellite anomalies and high leverage, “which is further exacerbated by big capex spending plans,” says Deutsche Bank.