UPDATE: Nomura Raises PT on DISH Network Following DCF Analysis
In a report published Monday, Nomura analyst Adam Ilkowitz reiterated a Neutral rating on DISH Network Corporation (NASDAQ: DISH), and raised the price target from $31.00 to $41.00.
In the report, Nomura noted, “We are raising our target price from $31 to $41 based on our DCF analysis, utilizing a 5.5x terminal EBITDA multiple and 8.5% cost of capital. This corresponds to 5.7x 2014E EBITDA, which we believe is a deserved discount to cable TV peers due to the lack of a growing broadband business. M&A outcomes could provide upside but they are unpredictable. We believe the DISH subscriber base has reached permanent decline, as its customers seek a broadband bundle or cut the cord. Better ARPU growth offsets this in part, leaving our long-term EBITDA forecasts unchanged in the $3.1–3.2bn range. Our estimates could prove too positive if programming costs rise more than expected, and we believe there are several major agreements expiring in 2H13.”
DISH Network Corporation closed on Friday at $44.50.
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