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Deutsche Bank Upgrades DISH Network (DISH) to Buy; Strong Trends

October 30, 2009 7:22 AM EDT
DISH Hot Sheet
Rating Summary:
    4 Buy, 5 Hold, 1 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 16 | Down: 7 | New: 23
Deutsche Bank upgrades DISH Network (Nasdaq: DISH) to Buy. Price target raised from $17 to $21.

Deutsche analyst says, "We have enough confidence in DISH’s trends to recommend shares, including easing competition (RBOCs stabilizing, DirecTV abdicating share) and improved DISH execution (more effective mkting, full HD line-up, improved call center results and retailer relations, limiting piracy, ramping retention efforts, increased direct mkting efforts, reasonable SAC). We also see an attractive valuation and potential for rising asset values for DBS companies post-DTV/Liberty deal. Governance remains a concern and near-term margins are difficult to forecast...We are raising 2009E net adds by 107k to 57k and 2010E by 51k to 70k as a result of our analysis of churn trends post AT&T’s 3Q results, DirecTV abdicating incremental share through raising its credit standards once again and based on the results of our 3Q channel checks (Pay TV Spotlight – 3Q09 Channel Checks Favor DBS, Comcast, 9/29/09)...We adjusted a variety of factors after a thorough review, which in aggregate drives 2009 EPS down $0.18 to $2.27 (+15% Y/Y) but took 2010E EPS up $0.06 to $2.38 (+5% Y/Y and well above consensus)."

To see more analyst ratings on DISH Click Here.

DISH Network Corporation, through its subsidiaries, engages in subscription television business in the United States.

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