Gilat Satellite Networks Positioned for Profitability Surge: Analyst Predicts Uptick in Peru Business

Needham analyst Ryan Koontz initiates coverage on Gilat Satellite Networks Ltd GILT with a Buy rating and a price target of $7.

GILT is a leading provider of satellite-based communications products, spanning ground equipment, end-point modems and related hardware, and end-to-end networks. 

GILT products cater to commercial applications, including In-Flight and fixed broadband access, cellular back-haul, and WAN connectivity to enterprise, maritime, trains, and defense end-points. 

He anticipates rising profitability and FCF in the company's Peru business. Also, he believes GILT can take advantage of rapidly expanding opportunities in the multi-orbit satellite sector, including dramatic growth in LEO. 

Demand for data connectivity and bandwidth capacity has been growing steadily for decades. Yet, he believes the industry is seeing an accelerating pace of new launches from satellite operators that sets the stage for a meaningful inflection of revenue growth and capital spending. GILT maintains an incumbent solid market position for its satellite end-point and ground station hardware devices and software platforms. 

The company's Peru terrestrial network is nearing completion, and he expects a near-term upturn in its profits and FCF.

Price Action: GILT shares traded higher by 6.27% at $6.10 on the last check Tuesday.