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Needham & Company maintained a Buy rating and $8.50 stock price target on shares of Gilat Satellite Networks (NASDAQ:GILT) on Tuesday. The company’s stance comes after Gilat reported fourth-quarter earnings for 2023, which showed a year-over-year revenue increase of 4%.
This growth has been attributed to the strong performance of in-vehicle connectivity (IFC), backhaul and business applications. The company also benefited from the acquisition of DataPath, which contributed to its financials over a six-week period.
Gilat’s revenue and adjusted EBITDA for the quarter were more or less in line with consensus. The company’s forecast for 2024 suggests revenue and EBITDA growth of 18% and 15% year-over-year, respectively, at the midpoint. This projection includes an expected revenue contribution of approximately $45 million from the recent acquisition of DataPath.
Management commentary along with the earnings report suggested 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 their financial outlook, Needham increased its forecast for Gilat’s 2024 revenues and Adjusted EBITDA.
The company’s analyst cited strong fourth-quarter results and the company’s promising outlook for next year as reasons to maintain the 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.
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