Credit Suisse Maintains an 'Outperform' on Dish Network (DISH); Great News--Positive Net Adds & A Settlement; Revising Estimates

Credit Suisse maintains an 'Outperform' on Dish Network (NASDAQ: DISH), raises PT from $28 to $34.

Credit Suisse analyst says, "What A Day! On May 2, DISH issued its 1Q11 10-Q, which contained two pieces of excellent news for DISH shares: (1) a very attractive litigation settlement with Tivo, that removes an overhang that has hobbled DISH shares for years, (2) a net adds surprise (+58k net adds, vs. consensus of -58k)...We view DISH shares as cheap, trading just 4.0x EV/2012E EBITDA, lowest among peers. In light of (a) the strong 1Q11 sub results, (b) the settlement with Tivo."

"We have raised our FY 2011 net adds est from -81k to +51k, but have left our FY ARPU growth est at 5.8%. Our higher 2011 YE sub base, nets to a higher FY2011 rev est of $13,280mm (growth of 5.1% vs. 4.6% prev.) & nudging our FY EBITDA est. from $3.513 to $3.517 (growth of 12%). Our FY2011 EPS est. now lands at $3.45 vs. $2.67 previously, driven by the reversal of Tivo litigation accruals."

For more ratings news on Dish Network click here and for the rating history of Dish Network click here.

Shares of Dish Network closed at $29.79 yesterday.

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