Broadband and communications products and services provider, Viasat Inc (VSAT), has acquired the remainder of Euro Broadband Infrastructure Sàrl (EBI). EBI provides wholesale broadband services and was set up under Viasat’s previous partnership with Eutelsat Communications.
Viasat President and CEO, Rick Baldridge said, “With the EBI purchase now complete, we can more aggressively move forward with growing our European broadband business and introduce new service offerings-before the launch of our Viasat-3 EMEA satellite.”
Baldridge added, “We can now set in motion our multi-tiered partner and distribution strategy while trialing new ‘Viasat-3 like’ home internet plans and new mobility offerings that best consider the needs and requirements of the local market dynamics as well as consumer and enterprise appetites for broadband.” (See Viasat stock analysis on TipRanks)
With this additional 51% stake, Viasat now has full control over the KA-SAT satellite and associated infrastructure on the ground. This enables the company to diversify its footprint in Europe and set up a base for its retail, enterprise, mobility, and government business units.
This month, Raymond James analyst Ric Prentiss upgraded Viasat to Buy from Hold and maintained a $67 price target (25.8% upside potential).
Prentiss believes Viasat is prudently managing costs as well as capacity and looks poised for strong growth.
Furthermore, Prentiss sees the company’s in-flight connectivity business recovering as more and more people get vaccinated and normal life resumes.
Consensus among analysts is a Strong Buy based on 3 Buys and 1 Hold. The average analyst price target of $64 implies 20.2% upside potential. Shares have gained about 17% over the past year.
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