Analyst Gregory Williams from TD Cowen maintained a Buy rating on Echostar and increased the price target to $100.00 from $67.00.
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Gregory Williams has given his Buy rating due to a combination of factors including the recent strategic moves by Echostar. The company announced the sale of its AWS-4 and H-block spectrum to SpaceX for a substantial $17 billion, which includes both cash and SpaceX stock. This transaction not only provides immediate financial benefits but also includes a long-term agreement allowing Echostar’s mobile customers to access SpaceX’s satellite services, enhancing their service offerings.
Additionally, the resolution of Echostar’s FCC dispute and the termination of its costly satellite plans indicate a strategic shift towards becoming a pure Mobile Virtual Network Operator (MVNO). This shift, along with the potential future sale of its remaining valuable spectrum assets, positions Echostar for significant financial gains. Williams’s increased price target reflects the expected value from these strategic decisions and the potential for further lucrative spectrum sales.
According to TipRanks, Williams is an analyst with an average return of -0.1% and a 44.58% success rate. Williams covers the Communication Services sector, focusing on stocks such as Echostar, T Mobile US, and AT&T.
In another report released on August 27, Deutsche Bank also maintained a Buy rating on the stock with a $67.00 price target.