Brean Capital Feels Wary About DISH Network Going Forward
In a report published Monday, Brean Capital analyst Todd Mitchell reiterated a Buy rating and $62.00 price target on DISH Network (NASDAQ: DISH).
In the report, Brean Capital noted, “We think DISH is being directed by a plan for greater value creation. We are just not sure it is the plan the market is pricing into the stock. Recent results, 4Q13 included, show us DISH is managing to zero sub growth in its pay-TV business, just a slow and steady improvement in sub quality, while aggressively growing its DISHNet HSD subs, and now buying an option on the HSD subs that belong to its EchoStar subsidiary.
"We think DISH is waiting for a chance to make a run for T-Mobile, should Sprint's efforts to get it first prove stymied by regulators, and if it is foiled by Sprint, to build out its own wireless network. We see the former scenario putting pressure on DISH's balance sheet, and the latter potentially impairing interim cash flows, but we acknowledge still other scenarios which point to the potential for more rapid recognition of value through the sales of the company and/or its spectrum assets. Given the high level of uncertainty, we urge caution at current levels.”
DISH Network Corp. closed on Friday at $57.92.
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