Dish Network Significantly Overvalued, Says BMO Capital Markets

BMO Capital Markets said DISH Network Corp DISH is valued at $57 per share, according to a Friday note that initiates coverage. The analysts said that the market overvalues Dish's spectrum as Dish itself was reason that prices were so high in recent auctions. Not mincing words, BMO said that Dish "drove up spectrum prices to support its stock price and foreclose competitors."

According to BMO, this overvalued spectrum accounts for 66 percent of Dish's price, which closed Thursday at $74.38.

When valuing the spectrum, BMO looked at the "most likely buyer" of Dish's spectrum, which bid 59 percent of Dish's net price and 45 percent of the gross price in the most recent auction. Therefore, $57 is a "bull-case" for Dish stock.