Analyst Benjamin Swinburne from Morgan Stanley maintained a Hold rating on Echostar and keeping the price target at $25.00.
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Benjamin Swinburne has given his Hold rating due to a combination of factors surrounding EchoStar’s current situation. The primary concern is the uncertainty regarding the company’s FCC licenses, which are under review. This uncertainty creates a wide range of potential outcomes for the company’s valuation, as the FCC’s decisions could significantly impact the value of EchoStar’s spectrum holdings.
Additionally, EchoStar faces a strategic tension between maximizing near-term value through spectrum sales and its long-term strategy of investing heavily in building businesses based on that spectrum. The company’s recent announcement of a $5 billion investment in a mobile wideband satellite network adds complexity to this situation. While subscriber growth for Boost is promising, the ongoing cash burn and the decision to delay further 5G network build-out until the FCC process is resolved contribute to the Hold rating. Swinburne’s analysis reflects these uncertainties and the potential implications for EchoStar’s investment outlook.
In another report released on August 2, TR | OpenAI – 4o also reiterated a Hold rating on the stock with a $26.00 price target.