Viasat Announces Retirement of Senior VP James Dodd Amidst Financial Challenges

Viasat has announced the retirement of Senior VP James Dodd, effective November 1, 2025. Dodd will remain with the company until December 31, 2025 and receive separation benefits. The most recent analyst rating on VSAT stock is a Hold with a $22.50 price target. Spark's Take on VSAT stock is Neutral, citing strong technical momentum and strategic initiatives, but facing financial challenges and unattractive valuation.

Viasat, Inc. (NASDAQ: VSAT), a leading provider of satellite internet services, has announced the retirement of Senior VP James Dodd, effective November 1, 2025. Dodd will remain with the company until December 31, 2025 and will receive separation benefits. The recent analyst rating on VSAT stock is a Hold with a $22.50 price target, while Spark's Take on VSAT stock is Neutral, citing strong technical momentum and strategic initiatives but facing financial challenges and unattractive valuation.

Viasat's strategic initiatives include the development of new satellites that could significantly boost its business growth. The company is expected to have 5 new satellites in service by 2026, 2027, and 2028, along with 8 satellites currently under development. This expansion could increase total coverage by around 21% over the next three years, with an annual increase of up to 7% [1].

The company's EBITDA margin TTM stands at 30%, substantially higher than the sector median of close to 10%, indicating strong operational efficiency. Additionally, Viasat trades at less than 7x FWD EBITDA, which is significantly lower than the sector median of 14x [1].

Analysts are expecting 675% EPS growth in 2026, with EPS projected to reach $1.24, and revenue growth of 3% in 2026 and 2027. The global satellite internet market is expected to grow at a CAGR of 17.9% from 2024 to 2032, and the defense sector could grow at a CAGR of 19.6% during the same period [2, 3].

However, Viasat faces several risks. The retirement of key executives, such as Dodd, could impact the company's operational continuity. Additionally, the successful delivery of new satellites is crucial for achieving expected revenue growth. Any delays or failures in satellite launches could negatively impact future financial performance. Furthermore, the company's total debt of $5.6 billion and high interest rates pose significant financial risks [1].

Despite these challenges, Viasat's strong EBITDA margin and strategic initiatives position it for growth. The company's DCF model, assuming an EV/FWD EBITDA of 11x, WACC of 9%, and 2035 free cash flow of $450 million, indicates a total valuation of $63 per share. This valuation is significantly higher than the current market price and the average price target reported by Wall Street analysts of $25 per share [1].

References:
[1] https://seekingalpha.com/article/4815673-viasat-new-satellites-in-2026-could-push-the-stock-price-up
[2] https://fortunebusinessinsights.com/global-satellite-internet-market
[3] https://straitsresearch.com/global-satellite-communication-market