J.P. Morgan Raises Estimates for DISH Network

J.P. Morgan

raised its 2010 EPS estimates for DISH Network Corp.

higher this morning by $0.13 to $1.99, driven by better top-line and margin trends. Analysts said that their forecast “reflects lower expectations for gross additions, more than offset by strong improvement in churn.” J.P. Morgan currently has a price target on DISH Network Corp. of $25.00; the stock is currently trading $20.92. This valuation and recommendation is based off of the discrepancy between DISH Network and DirecTV’s

EBITDA multiple. Currently DISH has a 4.4x multiple and DTV has a 6.6x. Analysts believe that this these valuations should converge higher given the growth opportunities and improving trends of DISH that warrants a premium to the company’s current valuation.