GILT Stock Forecast & Price Target

Gilat Satellite Networks Ltd. has demonstrated significant financial strength, ending the third quarter of 2025 with $155 million in cash and cash equivalents, a notable increase from $65 million in the previous quarter and $110 million year-over-year, largely attributed to the Stellar Blue acquisition. Despite a slight year-over-year decline in defense segment sales, management has highlighted a strong pipeline, and the Peru segment's performance contributed to revenues that exceeded consensus expectations, further supported by an upward trend in production from Stellar Blue. Additionally, the growth in the in-flight connectivity market, driven by the demand for high-performance Wi-Fi among airlines, positions Gilat to capitalize on high-margin opportunities, while its robust balance sheet enhances its potential as a consolidator in the evolving satellite technology space.

Gilat Satellite Networks Ltd faces a negative sentiment primarily due to a significant decline in the satellite mobile backhaul market, driven by the rise of new direct-to-device (D2D) services, which poses a challenge to its business model. Additionally, the company is expected to experience outsized volatility in its GAAP metrics, indicating potential inconsistencies in financial performance. While Gilat reported an EBITDA of $15.6 million, which exceeded consensus estimates by 17%, the underlying market dynamics raise concerns about sustained growth and profitability.