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Can VSAT Stock Gain From US Air Force Deal to Support DEUCSI Program?

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Viasat, Inc. (VSAT - Free Report) recently announced that it has been awarded a contract by the U.S. Air Force Research Laboratory (AFRL) to develop and deliver Active Electronically Scanned Array (AESA) systems for resilient satellite communications on tactical aircraft, including rotary-wing platforms. The contract, valued at $33.6 million, falls under the Defense Experimentation Using Commercial Space Internet (DEUCSI) program and is designed to promote the use of commercial satellite connectivity and services, addressing the government's need for reliable communications.

Under the contract, Viasat plans to create a high-performance, low size, weight and power AESA antenna that can facilitate resilient communications for tactical aircraft by enabling connections across multiple frequencies, orbits and commercial networks, leveraging its commercial AESA technology and radio frequency expertise. This cutting-edge AESA system will likely offer users the benefits of a simplified solution with no moving parts, improved performance and greater aerodynamics for the aircraft. 

Additionally, these phased array antennas will also be crucial for military operations, providing capabilities such as multiple beam management, low probability of intercept and jamming resistance.

Will VSAT Stock Benefit From the Contract?

Viasat’s impressive bandwidth productivity sets it apart from conventional and lower-yield satellite providers that run on incumbent business models. It has a competitive advantage in bandwidth economics, global coverage, flexibility and bandwidth allocation, which makes it believe that mobile broadband will act as a profit churner with a significant improvement in in-flight connectivity revenues. 

Viasat is dedicated to tackling the interoperability challenges posed by multi-band, multi-orbit and multi-constellation systems, ensuring high performance and cost-effective capabilities. Its commitment to advancing AESA phased array antenna technology across various domains underscores its aim toward providing hybrid resilient communication solutions for future government mobility operations. This innovation is expected to enhance flexibility and reliability in response to evolving mission requirements. 

As the demand for faster and more reliable connectivity continues to surge, contracts like this underscore Viasat’s dedication to expanding its global presence and enhancing its capabilities in delivering innovative solutions, leading to higher revenues. Improving financial performance is likely to propel the stock upward.

VSAT’s Stock Price Performance

Shares of Viasat have lost 29.2% over the past year against the industry’s growth of 52.1%.

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VSAT’s Zacks Rank and Key Picks

Viasat currently carries a Zacks Rank #3 (Hold). 

Some better-ranked stocks in the broader industry have been discussed below.

Ubiquiti Inc. (UI - Free Report) carries a Zacks Rank #2 (Buy) at present. Its highly flexible global business model remains apt to adapt to the changing market dynamics to overcome challenges while maximizing growth. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.


Its excellent global business model, which is flexible and adaptable to evolving changes in markets, helps it to beat challenges and maximize growth. The company’s effective management of its strong global network of more than 100 distributors and master resellers improved UI’s visibility for future demand and inventory management techniques. In the last reported quarter, Ubiquiti delivered an earnings surprise of 4.19%.  

Workday Inc. (WDAY - Free Report) carries a Zacks Rank #2 at present. In the last reported quarter, it delivered an earnings surprise of 7.36%. WDAY is a leading provider of enterprise-level software solutions for financial management and human resource domains. 

Airgain, Inc. (AIRG - Free Report) currently carries a Zacks Rank #2. It has a long-term earnings growth expectation of 35%.

Based in San Diego, CA, Airgain provides antenna products as integrated wireless solutions. These devices are designed to address vital connectivity requirements during product development and throughout the entire lifecycle of other industries, such as automotive and consumer, in addition to various sectors within an enterprise.


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