Dish Network (DISH) PT Raised to $66 at Macquarie; Spectrum Monetization Favorable
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Macquarie analyst Amy Yong reiterated an Outperform rating and bumped her price target on Dish Network (NASDAQ: DISH) to $66.00 (from $62.00), saying the backdrop for spectrum monetization is finally favorable.
Yong commented, "After being stuck in the penalty box, the backdrop for spectrum monetization is finally favorable: the spectrum auction is progressing and the DE-litigation could reach a resolution soon. Lastly, a new administration and new entrants into wireless could translate into additional opportunities for Dish. We boost our target price to US$66 (from $62) driven by higher spectrum value; as the likelihood of partnerships draw nearer, we could see greater upside."
The analyst said Dish's US$3bn convert boosts liquidity for spectrum purchases and potential M&A while interest capitalization keeps expense on the P&L minimal.
Per their survey, 44% of investors believe a Dish combo would receive less amount of pushback under a Clinton administration. The breakdown is as follows: 1) 45% of investors chose cable-wireless; 2) 44% chose a Dish combo (e.g. DISH-TMUS, DISH-S, DISH-VZ, DISH-T); and 3) 11% selected wireless-wireless. Cable/Telco convergence and new entrants into wireless could translate into additional opportunities for Dish like spectrum leasing or M&A. We estimate PF valuation for a DISH-telco combo could be ~US$70-75/sh.
Shares of Dish Network closed at $56.09 yesterday.
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