UBS Cuts Price target on DISH Network (DISH) Following Rejection of Partners’ Discounts in AWS-3 Auction

UBS maintained a Neutral rating on Dish Network (NASDAQ: DISH), and cut the price target to $68.00 (from $80.00), following the rejection of its partners’ discounts in the AWS-3 auction.

Analyst John Hodulik commented, "We are updating our DISH model to reflect the incremental $3.3B we expect the company to pay following rejection of its partners’ discounts in the AWS-3 auction (deadline 10/1 for payment or letter of credit, full payment due 12/16 if LOC is submitted by 10/1). We estimate this raises leverage by a turn, to ~5x. In June, DISH CEO Charlie Ergen suggested that he did not want to materially increase leverage (then ~4x). This new obligation seems to further reduce the chances that DISH bids aggressively—or at all—in the incentive auction slated for 1H16."

For an analyst ratings summary and ratings history on Dish Network click here. For more ratings news on Dish Network click here.

Shares of Dish Network closed at $60.94 yesterday.

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