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On Tuesday, Needham & Company sustained its Buy rating and $8.50 stock price target on shares of Gilat Satellite Networks (NASDAQ:GILT). The firm’s stance comes after Gilat reported fourth-quarter earnings for 2023, which displayed a year-over-year revenue increase of 4%.
This growth was attributed to strong performance across in-flight connectivity (IFC), backhaul, and enterprise applications. The company also benefited from the DataPath acquisition, which contributed to its financials for a period of six weeks.
Gilat’s revenue and adjusted EBITDA for the quarter were reported to be roughly in line with the consensus. The company’s guidance for 2024 suggests a revenue and EBITDA growth of 18% and 15% year-over-year at the midpoint, respectively. This projection includes an expected revenue contribution of approximately $45 million from the recent DataPath acquisition.
Management’s commentary alongside the earnings report hinted at a conservative outlook for 2024, with potential for upside. They expressed optimism about several new deals that are anticipated to significantly influence the company’s results in 2025. Following the integration of DataPath into their financial outlook, Needham has increased its forecasts for Gilat’s 2024 revenue and adjusted EBITDA.
The firm’s analyst has cited the fourth quarter’s solid results and the company’s promising guidance for the upcoming year as reasons for maintaining the Buy rating and the price target of $8.50. The positive outlook is further supported by the potential of new deals that could have a material impact on Gilat’s performance in the longer term.
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This story originally appeared on Investing
