EchoStar (SATS) Continuing Higher as Citi Upgrades to Buy, Adds to Top Picks Live List
Citigroup upgrades EchoStar (Nasdaq: SATS) all the way from Sell to Buy, also raising it's price target on the stock from $13.50 to $21 and adding the company to it's Top Picks Live list.
The firm estimates that EchoStar has liquid assets worth about $15 per share, with positive free cash flow in the first half of this year. Also limiting downside risk in the stock, Citi cites DISH Network's (Nasdaq: DISH) "agreement to indemnify SATS for all damages above $5M from litigation with TiVo" (Nasdaq: TIVO). DISH also recently reported that it is once again adding net subscriptions for the first time in 5 quarters, something that certainly bodes well for EchoStar.
Shares of EchoStar are continuing higher today amid the upgrade. The stock rose nearly 8% yesterday on the back of better-than-expected Q2 results. The company reported quarterly EPS of $1.18, which compares to $0.53 in the same quarter last year, on sales of $383 million, down 20.7% from the $482 million reported in Q208.
EchoStar most recently traded at $18.19, up 13.9% from yesterday's close. Citi's price target represents potential price appreciation of about 15% from current levels.
The firm estimates that EchoStar has liquid assets worth about $15 per share, with positive free cash flow in the first half of this year. Also limiting downside risk in the stock, Citi cites DISH Network's (Nasdaq: DISH) "agreement to indemnify SATS for all damages above $5M from litigation with TiVo" (Nasdaq: TIVO). DISH also recently reported that it is once again adding net subscriptions for the first time in 5 quarters, something that certainly bodes well for EchoStar.
Shares of EchoStar are continuing higher today amid the upgrade. The stock rose nearly 8% yesterday on the back of better-than-expected Q2 results. The company reported quarterly EPS of $1.18, which compares to $0.53 in the same quarter last year, on sales of $383 million, down 20.7% from the $482 million reported in Q208.
EchoStar most recently traded at $18.19, up 13.9% from yesterday's close. Citi's price target represents potential price appreciation of about 15% from current levels.
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