Benchmark Downgrades Dish Network (DISH) to Hold, 'Broad Denials on any Amazon Prime Wireless Deal'

Benchmark analyst Matt Harrigan downgraded Dish Network (NASDAQ: DISH) from Buy to Hold.

The analyst comments "We are lowering our rating on Dish Network to Hold from Buy. Our prior $37 PT and fair valuation estimation had been inclusive of a 5G O-RAN network model through 2031. Last week's stock action off a flurry of media reports suggesting Dish could partner with Amazon (AMZN-Buy, PT $130, Analyst Dan Kurnos), to offer wireless to Prime customers at nominal pricing or free is indicative of Dish's network potential although we were highly skeptical of any immediate initiative even prior to denials from Amazon and the large MNOs. Fair value in the mid or high 30's is still tenable in our estimation through recovery of Dish's $30B+ spectrum investment (while aspirational), through successful commercialization via its cloud-based open RAN and VoNR network architecture. Dish will satisfy FCC requirements for its 600 MHz licenses reaching 70% of the U.S. this month and is working to address liquidity concerns, including most imminently a $1B 2024 convertible maturity even as it cannot currently access the straight debt market at satisfactory rates despite being “asset rich”. Management remains opaque as far as clarity on addressing liquidity concerns, although it maintains it can back out of its $3.5B purchase of Sprint spectrum from T-Mobile with only $72M in payments"

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 $7.30 yesterday.

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