Viasat (NASDAQ: VSAT) shares climbed 10% on Tuesday, adding to Monday's 23% surge, as investors continued to digest a series of U.S. Space Force contract awards, growing optimism in the satellite sector, and a bullish new analyst initiation. The stock has drawn significant attention following multiple defense wins that strengthen its position in secure satellite communications.
Space Force Awards Bolster Defense Backlog
A key catalyst for the rally was Viasat's advancement in the U.S. Space Force's Protected Tactical SATCOM-Global (PTS-G) program. The company moved from the design phase to a prime contract to build, launch, and deliver the first maneuverable geostationary Earth orbit (GEO) satellite under the program. This transition provides greater long-term revenue visibility through a multi-year backlog.
Viasat also secured a portion of a $437.7 million U.S. Space Force contract to deliver the first two operational anti-jam PTS-G satellites for the Swarm 1 constellation. The award covers manufacturing, launch, and on-orbit checkout. Beyond defense, the company expanded its government business by being selected by Lockheed Martin to provide high-bandwidth satellite connectivity for NOAA's next-generation C-130J Hurricane Hunter aircraft. The program initially covers two aircraft with options for additional planes, with service targeted to begin around 2030.
Analysts Highlight Spectrum Assets and Growth
Oppenheimer initiated coverage on Viasat with an Outperform rating and a $140 price target. Analyst Timothy Horan described the company as “the last major global satellite spectrum play left.” According to Horan, Viasat's globally harmonized spectrum holdings position it to benefit from the growing direct-to-device (D2D) communications market. He estimates the spectrum assets alone are worth roughly $15 billion on a conservative basis and noted that recent industry transactions suggest they could ultimately command a higher valuation. Horan also expects Viasat's core business to reach a free cash flow inflection point and values that business at more than $10 billion.
The bullish view follows several other positive analyst updates. B. Riley raised its price target to $106 from $94 while maintaining a Buy rating in May. Deutsche Bank reiterated its Buy rating with a $97 target in June, and Raymond James assigned an Outperform rating with a $74 target. Barclays remains more cautious, maintaining a $49 price target.
Satellite Sector Optimism Lifts Shares
The recent rally also coincided with renewed investor interest in satellite companies after Rocket Lab announced an agreement to acquire Iridium Communications in an $8 billion cash-and-stock transaction. Under the agreement, Iridium shareholders will receive $54 per share in a combination of cash and stock. The deal, expected to close in mid-2027 pending regulatory approvals, combines Rocket Lab's launch and satellite manufacturing operations with Iridium's low Earth orbit satellite constellation and spectrum assets.
Earlier this year, Viasat successfully launched its ViaSat-3 F3 satellite aboard a SpaceX rocket. The satellite is expected to begin service in the Asia-Pacific region later this year, while ViaSat-3 F2 is also nearing commercial service, significantly expanding the company's global network capacity. For context on broader market movements, see our coverage of SpaceX Stock Drops 2% as Valuation Debate Intensifies Post-IPO and 5 Under-the-Radar Stocks Analysts Favor for Summer 2026 as Market Broadens.
This article is for informational purposes only and does not constitute financial advice.
