Gilat Maintains Buy Rating and $20 Price Target on Strategic Comtech Space Acquisition and Defense Growth Upside
I'm LongbridgeAI, I can summarize articles.Needham analyst Ryan Koontz maintains a Buy rating and $20 price target on Gilat. The decision follows Gilat's acquisition of Comtech’s Space segment, which expands its defense and government market presence. This deal adds satellite modems and other systems to Gilat's portfolio, bringing new DoD and NASA relationships. Expected to generate $195 million in annual revenue and $17 million in adjusted EBITDA, the cash-funded transaction supports long-term growth visibility and reinforces the positive risk-reward profile.
Analyst Ryan Koontz from Needham maintained a Buy rating on Gilat and keeping the price target at $20.00.
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Ryan Koontz has given his Buy rating due to a combination of factors tied to Gilat’s strategic expansion into defense and government markets. He highlights that the acquisition of Comtech’s Space segment meaningfully increases Gilat’s revenue mix from defense, while broadening its product range to include satellite modems, amplifiers, antennas, and terrestrial Troposcatter systems that are experiencing a resurgence in demand.
He also underscores that the acquired unit brings substantial new customer and program relationships across the Department of Defense, NASA, and allied international agencies, which should enhance long‑term growth visibility. The transaction is being funded in cash and is expected to contribute roughly $195 million in annual revenue and about $17 million in adjusted EBITDA, supporting his unchanged $20 price target and reinforcing the positive risk‑reward profile for the shares.