Needham reiterated a Buy rating for Gilat Satellite Networks. The firm set a $20.00 price target following Gilat's agreement to acquire a significant portion of Comtech’s satellite and space division.
The transaction will nearly double Gilat’s defense-related revenue exposure. This segment is expected to represent 38% of the company's total revenue.
The acquisition adds satellite modems and antennas to Gilat's technology portfolio. It also secures critical relationships with the Department of Defense and NASA.