Citi sees ‘multiple possibilities’ for EchoStar to monetize spectrum

Citi says the Federal Communications Commission is contemplating actions that may negatively impact EchoStar’s (SATS) spectrum portfolio. The two key issues are the possible reclamation of licenses that didn’t meet previously-established coverage targets, and authorizing Starlink to share the 2 GHz AWS-4 spectrum for mobile satellite services services, the analyst tells investors in a research note. The firm notes that in response, EchoStar has delayed interest payments on two different bond issuances that could lead to a default event if those payments are not made within 30 days of their due date. On Friday, Bloomberg reported that President Trump has intervened to push EchoStar and the FCC to resolve their dispute, while the FCC Chair asked EchoStar to sell spectrum in a different meeting, Citi points out. The firm is now open to the idea that the FCC simply wants to maximize spectrum usage and could be okay with only three facilities-based national carriers. This opens up multiple possibilities for EchoStar to monetize its spectrum, the firm contends. It sees a path for total EchoStar value “to be better than the current price in certain scenarios.” Citi keeps a Neutral rating on the shares with a $27 price target The stock in late morning trading is up 48%, or $8.15, to $24.99.