UPDATE: Citigroup Raises PT on DISH Network Ahead of Strategic Challenges

In a report published Wednesday, Citigroup analyst Jason B. Bazinet reiterated a Buy rating on DISH Network DISH, and raised the price target from $43.00 to $61.00.

In the report, Citigroup noted, “Mr. Ergen faces twin strategic challenges. For his DBS business, the balance of power still skews heavily in favor of the content firms putting secular pressure on video margins. And, following the failed attempt to acquire Sprint – coupled with T-Mobile's acquisition of MetroPCS and AT&T's offer for Leap - Dish's wireless spectrum is quickly running out of strategic partners. In light of these twin challenges, Mr. Ergen has two broad options: 1) Hold the assets that he has and attempt to navigate these challenges as a standalone firm or 2) Sell his wireless and DBS assets to suitors that may create more economic value than Dish could on its own. We suspect Mr. Ergen is savvy enough to recognize that a sale of his assets is the most prudent – and most lucrative – course of action.”

DISH Network closed on Tuesday at $44.64.