NEW YORK, June 29, 2026 – Shares of satellite communications company Viasat (NASDAQ:VSAT) surged 23.8% in Monday's regular Nasdaq session, closing at $76.69, as the broader satellite sector rallied on a wave of positive catalysts. The stock's upward momentum continued in after-hours trading, reflecting heightened investor interest in space-based communications assets.
The rally was fueled by two key developments. First, Oppenheimer Holdings initiated coverage on Viasat with an Outperform rating and a price target of $140, representing a potential 82.6% upside from the previous close. Analyst Timothy Horan highlighted the company's valuable spectrum holdings as a primary driver for the bullish call.
Second, Rocket Lab (NASDAQ:RKLB) announced a definitive agreement to acquire Iridium Communications (NASDAQ:IRDM) in a deal valued at approximately $8 billion. Under the terms, Iridium shareholders will receive $27 in cash plus Rocket Lab shares for each Iridium share held, implying a value of about $54 per share. The transaction underscores the strategic importance of satellite spectrum and established subscriber bases.
The sector-wide impact was immediate and significant. Iridium shares jumped 25.4% to $54.59, while Rocket Lab gained 15.9% to $98.01. AST SpaceMobile (NASDAQ:ASTS) rose 21.3% to $86.77, and Globalstar (NYSEAMERICAN:GSAT) added 1.1% to $81.13. The ARK Space & Defense Innovation ETF (BATS:ARKX) closed up 3.9% at $33.13.
The Oppenheimer price target of $140 stands well above the analyst consensus average of $88.88, as tracked by StockAnalysis. Investors now face a narrower margin of safety: at Monday's close, the stock trades at a 15.9% discount to the average target, compared to a much wider gap before the rally. The current price is also 17.1% below the stock's 52-week high of $89.79.
Viasat's fundamental position remains strong. The company reported fiscal 2026 revenue of $4.6 billion, adjusted EBITDA of $1.6 billion, and free cash flow of $177 million (excluding a one-time Ligado payment). Capital expenditures totaled $993 million. Management guided for mid-single-digit revenue growth in fiscal 2027, with adjusted EBITDA expected to be flat to slightly higher. Capital spending is forecast between $950 million and $1.0 billion, with free cash flow projected around $180 million.
The company's defense business is a key growth driver. On June 11, Viasat announced its participation in the U.S. Space Force's PTS-G program, which carries a $4 billion ceiling across all awardees. CEO Mark Dankberg has emphasized that the company's fleet expansion will approximately triple its bandwidth inventory, positioning Viasat to capture growing demand for satellite capacity.
Rocket Lab CEO Sir Peter Beck described the Iridium acquisition as a strategic move to secure "the all-important spectrum," while industry analyst Micah Walter Range of Caelus Partners noted that the deal provides Rocket Lab with "an initial customer base and distribution network" that may prove more valuable than the hardware and spectrum alone.
For Viasat, the combination of a strong analyst endorsement and a transformative sector transaction has created a powerful catalyst. However, with the stock now trading closer to analyst targets, the risk-reward profile has shifted, and investors may need to look to the higher end of estimates or further sector consolidation for additional upside.
