EchoStar (SATS) rose by about 3% to over $82 on Tuesday morning, as it became public that the U.S. telecoms regulator had ended its investigation into the satellite communication company’s slow deployment of its 5G services. This comes a day after the Colorado-based company sold its AWS-4 and H-block spectra to space firm SpaceX in a $17 billion deal.
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The development also comes less than two weeks after EchoStar struck a $23 billion deal with AT&T (T), agreeing to sell its 3.45 GHz and 600 MHz spectrum licenses to the wireless telecoms giant. With the news, SATS stock continues to extend its recent rally, bouncing higher on the deals and the removal of the regulatory obstacle.
FCC Clears EchoStar
The update on the end of the investigations by the U.S. Federal Communications Commission (FCC) was revealed in a document filed by EchoStar on Tuesday.
Meanwhile, the FCC noted in a letter to Charles Ergen, Chairman of EchoStar, that it had issued instructions for EchoStar’s 5G service deployment to be cleared as satisfactory. The telecom regulator mentioned its intention to confirm EchoStar’s exclusive rights to a major spectral block for both ground and satellite applications.
Previously, SpaceX had requested the regulatory body to investigate EchoStar over the possibility that the satellite communications provider was hoarding valuable spectrum. However, EchoStar’s recent deals seemed to have helped blow away that narrative.
Is EchoStar a Buy, Sell, or Hold?
On Wall Street, EchoStar’s stock has a Moderate Buy consensus recommendation based on analysts’ assessments over the past three months on TipRanks. The recommendation is based on two Buy and three Hold ratings by five Wall Street analysts.
Furthermore, the average SATS price target of $73.25 suggests an 11.69% downside risk from the current levels. In addition, TipRanks’ AI Stock Analyst also gives the stock a Neutral score of 54 out of 100. This comes with a price target of $82, which indicates a potential 1.43% decrease in value.
