TD Cowen analyst Gregory Williams maintained a Buy rating on Echostar (SATS – Research Report) yesterday and set a price target of $32.00.
Gregory Williams has given his Buy rating due to a combination of factors that highlight Echostar’s strategic positioning and financial performance. The company has shown impressive results in the fourth quarter of 2024, with revenue and EBITDA exceeding expectations, particularly in the PayTV and Wireless segments. The reclassification of segments into a single ‘Wireless’ category, despite making historical comparisons challenging, has demonstrated strong performance, especially with significant phone additions.
Moreover, Echostar’s strategic focus on the top 100 markets, rather than costly rural expansions, positions it well for future growth and partnerships. The company’s substantial unencumbered spectrum value provides flexibility for strategic options, such as potential partnerships or asset sales, enhancing its financial stability and growth prospects. These factors, combined with the revamped capital structure and improved liquidity, underpin Williams’s confidence in Echostar’s ability to unlock equity value, justifying the Buy rating.
According to TipRanks, Williams is an analyst with an average return of -2.1% and a 45.00% success rate. Williams covers the Communication Services sector, focusing on stocks such as Cogent Comms, AT&T, and Lumen Technologies.