© Gilat Satellite Networks PR
On Tuesday, Needham & Company maintained its Buy rating and $8.50 price target on shares of Gilat Satellite Networks (NASDAQ:GILT). The company's stance comes after Gilat reported fourth-quarter 2023 earnings, which showed a 4% year-over-year revenue increase.
This growth was attributed to strong performance in inflight connectivity (IFC), backhaul and enterprise applications. The company also benefited from the acquisition of DataPath, which helped its bottom line over a six-week period.
Gilat's revenue and adjusted EBITDA for the quarter were reported to be roughly in line with consensus. The company's 2024 guidance suggests 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 acquisition of DataPath.
Management's commentary along with the earnings report hinted at a conservative outlook for 2024, with upside potential. They expressed optimism about several new deals that are expected to significantly impact the company's results in 2025. Following the integration of DataPath into its financial outlook, Needham has raised its guidance for Gilat's 2024 revenue and adjusted EBITDA.
The company's analyst has cited the company's strong fourth-quarter results and promising guidance for next year as reasons for maintaining a Buy rating and $8.50 price target. The positive outlook is further supported by the potential for new deals that could have a material impact on Gilat's long-term performance.
This article was generated with the support of ai and reviewed by an editor. For more information consult our T&C.
