Viasat’s Strategic Split: JPMorgan Sees Higher Valuation Potential

Viasat Inc. (NASDAQ:VSAT) has captured significant attention in the stock market this year, particularly following a pivotal upgrade from JPMorgan analyst Sebastiano Petti. On November 11, 2025, Petti raised his price target for Viasat to $50 from $23 and upgraded the stock rating from Neutral to Overweight. This substantial increase reflects growing confidence in the company’s potential strategic separation of its Defense and Advanced Technologies division.

In a recent research note, Petti emphasized the importance of Viasat’s shareholder letter, which outlined the company’s ongoing evaluation of options to enhance shareholder value. He noted that while a strategic split could be beneficial, the implementation may take several quarters as Viasat explores its choices. The analyst’s revised price target is based on a sum-of-the-parts valuation, indicating that the individual components of Viasat’s business may be worth more separately than collectively.

The potential split comes amid discussions from activist investor Carronade Capital Management, which suggested a separation of the defense sector in early August. This recommendation coincided with Viasat’s announcement of its Q2 results, which contributed to a remarkable 50% surge in the company’s stock price. Since then, Viasat’s shares have soared an impressive 100%, reflecting a year-to-date increase of 258% as of November 20, 2025.

Viasat is recognized as a global communications leader, specializing in high-speed satellite broadband services and secure networking solutions. The company caters to a diverse clientele, including commercial, government, and military sectors, providing essential services such as satellite internet access, in-flight connectivity, and secure communication technologies.

Despite the positive outlook for Viasat, some investors may consider other opportunities within the technology sector. Reports indicate that certain artificial intelligence stocks are perceived to have even greater potential for returns in the short term.

As Viasat continues to navigate its strategic options, the next few quarters will be crucial in determining how effectively the company can realize its potential for higher valuation and enhanced shareholder returns.

In conclusion, Viasat’s evolving strategy, coupled with strong market performance, positions the company as a key player in the communications sector, though investors will need to weigh potential risks and rewards in the coming months.