"Sentiment and a lumpy business can create attractive buying opportunities in stocks, and we view this as one of those times for VSAT," writes Wells Fargo's Andrew Spinola, upgrading shares (VSAT +2.8%) to Outperform. His valuation range has been lifted by $5 to $70-$74.
Spinola thinks near-term expectations "have been adequately reset" ahead of Tuesday's FQ4 report, after ViaSat posted an FQ3 miss and disappointing sub growth in February.
He still considers ViaSat "one of the best-positioned companies in satellite broadband," and calls shares attractively valued at 9x FY16E EBITDA. A 23% EBITDA CAGR is forecast through FY18.