Deutsche Bank upgraded Viasat from Hold to Buy, citing upcoming satellite deployments and growing confidence in a potential spin-off of its Defense & Advanced Technologies unit. The brokerage highlighted two major satellites scheduled to become operational later this year as key drivers of the company's growth outlook. The proposed separation of the defense business could unlock additional value, with Deutsche Bank moving to a sum-of-the-parts valuation approach.

While acknowledging ongoing structural pressure from low-Earth orbit competitors on Viasat's core satellite communications segment, the bank said the potential DAT separation shifts the investment case. The defense unit, as a standalone entity, could command a higher valuation based on comparable company trading multiples. Management's increasing focus on shareholder returns, potentially extending beyond the DAT spin-off, adds to the positive outlook. Deutsche Bank suggested there may be scope for additional value-creation steps such as spectrum monetization or optimization over time.

Based on its updated valuation framework using fiscal 2027 EBITDA estimates, Deutsche Bank raised its price target to $48 from $36, implying about 15% upside from current levels. The upgrade reflects the bank's view that the defense business may be worth more independently, despite competitive pressures in the satellite communications market.