UPDATE: Dish Shares Flat Despite Raymond James Upgrade
Shares of Dish (NASDAQ: DISH) are flat Friday despite a Raymond James upgrade. The firm’s Frank Louthan responded to Dish’s disappointing earnings Thursday morning, which subsequently sent shares down 4.02 percent.
The analyst upgraded shares of DISH from Underperform to Market Perform.
One of the key reasons for the upgrade, according to Louthan, is the company’s performance versus competitors. Specifically, analysts thought Directv would steal Dish’s market share. In addition, Louthan believes Dish may be a takeover target for AT&T; the deal would provide AT&T with bandwidth and additional wireless spectrum.
Louthan did not put a price target on Dish, but he thinks Dish should trade at a discount to pay TV companies; these companies are trading at 12.5 times expected free cash flow and six times EBITDA (the two metrics cited in the report).
After dropping at the beginning of the session, shares of Dish are currently flat at $60.14.
© 2014 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.