What Happened?

Shares of global satellite communications provider Viasat (NASDAQ: VSAT) jumped 3% in the afternoon session after Morgan Stanley significantly raised its price target on the stock and the company announced new business developments. 

The investment bank increased its price target on Viasat to $51 from $12, though it maintained an Equalweight rating. In addition, the company, along with Bharat Sanchar Nigam Limited (BSNL), announced it would support the next phase of the Indian Navy's satellite communications modernization program. This plan involved deploying Viasat's high-capacity satellite systems for secure connectivity. Viasat also revealed plans to deploy a new test facility in Singapore to support air traffic operations throughout the Asia Pacific region, further reinforcing its commitment to advancing global aviation.

The shares closed the day at $45.93, up 4.1% from previous close.

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What Is The Market Telling Us

Viasat’s shares are extremely volatile and have had 62 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.

The previous big move we wrote about was 3 days ago when the stock gained 4% on the news that an analyst at William Blair reiterated an Outperform rating on the company's stock. The positive commentary followed a move by competitor L3Harris, with the analyst suggesting that L3Harris's proposed spinout might inspire Viasat to follow a similar path. This potential for a corporate restructuring was viewed favorably. The bullish outlook was also supported by the company's performance in its In-Flight Connectivity (IFC) segment, which had reported a 14% year-over-year increase in revenue. This growth was driven by higher service use and expansion.

Viasat is up 22% since the beginning of the year, and at $45.93 per share, has set a new 52-week high. Investors who bought $1,000 worth of Viasat’s shares 5 years ago would now be looking at an investment worth $1,139.

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