Can Viasat's Partnership With Rocket Lab Meet Growing Defense Demand?
VSAT is deepening its military satellite communications push through a Rocket Lab partnership for the U.S. Space Force???s PTS-G program.
Viasat, Inc. VSAT is expanding its presence in military satellite communications through a partnership with Rocket Lab Corporation RKLB to develop a satellite bus for the U.S. Space Force’s Protected Tactical SATCOM-Global (PTS-G) program. The agreement supports Viasat’s efforts to provide advanced communications capabilities for critical defense missions.
Per the deal, Viasat will use Rocket Lab’s GEO-configured Lightning spacecraft platform as the satellite bus for its dual-band X/Ka communications payload. The satellite will combine the company’s communications technology with Rocket Lab’s vertically integrated systems, including power, radios, navigation components and flight software, to support reliable connectivity for the United States and allied forces operating in contested environments.
The company is strengthening its focus on dual-use satellite technologies for government and commercial applications through the program. Viasat will also provide five years of operations and sustainment services, including tracking, telemetry and command, satellite and network operations, and cybersecurity.
As defense spending increases and demand for secure satellite communications grows, the collaboration is likely to help Viasat expand its government business and benefit from rising demand for advanced military connectivity.
How Are Competitors Advancing in the Defense Sector?
Viasat faces competition from Nokia Corporation NOK and Comtech Telecommunications Corp. CMTL. Nokia is strengthening its defense business with secure wireless communication solutions for military and government use. The company is working to provide reliable connectivity for defense operations and support modern security needs. Nokia is adding AI-ready technology to its defense networks to enable faster data analysis and decision-making.
Comtech is strengthening its communications portfolio with technologies designed for defense and other mission-critical applications. The company introduced a multi-orbit tactical SATCOM modem with L3Harris, supporting military users across different satellite networks. Comtech is expanding its satellite ground and communications technologies to support reliable connectivity for defense and government customers.
Viasat's Price Performance, Valuation & Estimates
Viasat shares have skyrocketed 188.1% over the past year compared with the industry’s growth of 38.2%.
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From a valuation standpoint, Viasat trades at a forward price-to-sales ratio of 2.13, below the industry tally of 4.99.
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Earnings estimates for 2027 have increased 60% to 32 cents over the past 60 days, while the same for 2028 has decreased 29.3% to 29 cents.
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Viasat currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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Viasat Inc. (VSAT): Free Stock Analysis Report
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This article originally published on Zacks Investment Research (zacks.com).