Nomura Securities Maintains a 'Buy' on Dish Network (DISH); Strong Subscriber Gains…At A Cost
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Price: $5.77 --0%
Rating Summary:
10 Buy, 20 Hold, 5 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
10 Buy, 20 Hold, 5 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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Nomura Securities maintains a 'Buy' on Dish Network (NASDAQ: DISH) price target of $27.00.
Analyst, Mike McCormack, said, "Strong subscriber additions, which were led by better-than-expected churn, will likely be overshadowed by soft customer revenue and EBITDA metrics. We are particularly focused on the negative pre-SAC margins, which is a departure from the +11.6% posted in 4Q11. Similar to peer DIRECTV, which had negative pre-SAC margins in 4Q11, we believe that the combination of programming and retention expense growth overwhelmed low-single-digit pricing growth, driving margin compression. As an offset, churn of 1.35% was likely the lowest ever, and better than the 1.40% prior low posted in 1Q10. For reference, lower churn extends the average customer life by ~9 months; we expect this, along with spectrum optionality, to remain the focus of bullish investors."
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 $31.31 yesterday.
Analyst, Mike McCormack, said, "Strong subscriber additions, which were led by better-than-expected churn, will likely be overshadowed by soft customer revenue and EBITDA metrics. We are particularly focused on the negative pre-SAC margins, which is a departure from the +11.6% posted in 4Q11. Similar to peer DIRECTV, which had negative pre-SAC margins in 4Q11, we believe that the combination of programming and retention expense growth overwhelmed low-single-digit pricing growth, driving margin compression. As an offset, churn of 1.35% was likely the lowest ever, and better than the 1.40% prior low posted in 1Q10. For reference, lower churn extends the average customer life by ~9 months; we expect this, along with spectrum optionality, to remain the focus of bullish investors."
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 $31.31 yesterday.
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