VSAT - Viasat Earnings: Debt Burden And Stagnant Growth I'm Giving It A Wide Pass

2024-05-22 06:08:31 ET

Summary

• Viasat's financial outlook for the year ahead is lackluster, with minimal growth and an expected increase in debt.
• The company provides satellite communication services and focuses on delivering high-speed internet and connectivity solutions.
• While VSAT stock appears cheap, its financial situation and potential challenges make it a risky investment in the near term.

Investment Thesis

Viasat ( VSAT ) delivers lackluster guidance for the year ahead. At its core, even though Viasat looks cheap at less than 2x forward EBITDA, the fact of the matter is that this business is eyeing up a year of puny growth, if any, together with a balance sheet that is expected to swell further over the next twelve months....

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