Freedom sees attractive entry point in satellite maker Gilat amid geopolitical morass

Shares of Israeli satellite communications company Gilat, which are traded on the Nasdaq, could rise almost 20% over the next two months, according to an investment idea put out by Freedom Broker (and seen by Oninvest). The selloff following the company’s latest earnings has created an attractive entry point, while rising tensions in the Middle East are boosting demand for the company’s products, the analysts said.

Gilat’s shares could climb to $19 apiece on a two-month horizon, Freedom Broker argues. That is 19.5% above the closing price on Friday. On that day, the stock was little changed; in early trading on Monday, the shares had ticked up more than 2% as of this writing.

The escalating geopolitical situation in the Middle East strengthens Gilat’s investment case, as the company stands to benefit from rising defense and security spending, Freedom wrote.

Reliable satellite communications, secure data links, and resilient terrestrial networks are a critical element of defense capability for Israel and its allies in the region, the analysts said. Meanwhile, they flag as a risk that the company’s production facilities could be attacked.

Gilat was founded in 1987 by former Israeli intelligence officers, as were many companies in Israel’s high-tech sector. It is a leading provider of very-small-aperture-terminal (VSAT) technology. These systems are widely used in maritime navigation and by the military, as they can be rapidly deployed virtually anywhere in the world. Over its long history, Gilat has experienced ups and downs, including several financial crises and the dot-com bubble. In 2025, the company completed the acquisition of U.S.-based Stellar Blu, a provider of avionics solutions and satellite communications terminals.

In 2025, Gilat reported revenue growth of 48% to $451.7 million. For 2026, the company guides for revenue to rise by about 13% to $500-520 million.

The company has delivered accelerating growth for several consecutive quarters, with the management consistently upgrading its guidance, Freedom points out. The company’s commercial segment, primarily airborne communications solutions, is expanding several times faster than the broader market, while Gilat’s defense segment is strengthening through new contracts with the U.S. and Israeli armies, the analysts said. In mid-February, for example, the company announced a $9 million contract with Israel’s Ministry of Defense.

However, the latest earnings failed to excite investors, and the company’s shares fell 3.3% after release. That decline leaves upside on the table, Freedom said in its trade idea.

Wall Street broadly shares that view. The stock has three analyst ratings, all of them “buy.” The average target price is $19 per share, or 19.5% above the last closing price. Year to date, Gilat shares have risen almost 23%.