Dish (DISH) Spectrum Nowhere Near Discounted in Stock Price – Deutsche Bank
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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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According to reports, the FCC is closing in on a final Notice of Proposal Rulemaking order for terrestrial use of DISH’s (Nasdaq: DISH) AWS-4 spectrum.
Analyst Doug Mitchelson said the updated terms appear in line with press speculation in recent weeks, and may be a catalyst for DISH shares.
"Perhaps the greatest DISH investor fear has been that the FCC would pursue some form of penalty or restriction against DISH in exchange for allowing terrestrial use of the AWS-4 band, given terrestrial use will make DISH's spectrum much more valuable. The latest NPRM draft increases our confidence that DISH will not be penalized or artificially strategically limited by the FCC," said Mitchelson.
One negative seen in the ruling is strict out of band emissions limitations to protect AWS-2 (HBlock), which the FCC intends to auction off in 2013, noted the Deutsche Bank report.
"This limits the use of a portion of DISH’s 20 MHz of uplink spectrum (perhaps 5 MHz), which appears minor to us," said Mitchelson, adding that "We think it is quite fair to say that DISH's spectrum value is nowhere close to being appropriately discounted in its stock price."
Deutsche Bank has a Buy Rating on DISH with a price target of $43.
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 $34.85 yesterday.
Analyst Doug Mitchelson said the updated terms appear in line with press speculation in recent weeks, and may be a catalyst for DISH shares.
"Perhaps the greatest DISH investor fear has been that the FCC would pursue some form of penalty or restriction against DISH in exchange for allowing terrestrial use of the AWS-4 band, given terrestrial use will make DISH's spectrum much more valuable. The latest NPRM draft increases our confidence that DISH will not be penalized or artificially strategically limited by the FCC," said Mitchelson.
One negative seen in the ruling is strict out of band emissions limitations to protect AWS-2 (HBlock), which the FCC intends to auction off in 2013, noted the Deutsche Bank report.
"This limits the use of a portion of DISH’s 20 MHz of uplink spectrum (perhaps 5 MHz), which appears minor to us," said Mitchelson, adding that "We think it is quite fair to say that DISH's spectrum value is nowhere close to being appropriately discounted in its stock price."
Deutsche Bank has a Buy Rating on DISH with a price target of $43.
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 $34.85 yesterday.
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