What's Happening?
Viasat's stock rose by 4.3% to $38.56 in premarket trading after J.P. Morgan upgraded the stock from 'neutral' to 'overweight'. The upgrade is based on the increased likelihood of a separation of Viasat's Defense
and Advanced Technologies (DAT) segment, which is currently trading at a discount compared to its peers despite strong growth. The brokerage also noted that Viasat's communication services segment is underappreciated and supported by a solid backlog.
Why It's Important?
The upgrade by J.P. Morgan reflects confidence in Viasat's strategic direction and potential for growth, particularly in its DAT segment. This move could attract more investors, leading to increased stock value and market presence. The potential separation of the DAT segment may unlock additional value for shareholders and allow Viasat to focus on its core strengths. The positive outlook from a major brokerage can significantly influence investor sentiment and market dynamics, potentially leading to further stock appreciation.
