UPDATE: Nomura Reiterates Neutral Rating, Raises PT on DISH Network Corporation Following Mixed Quarter Results

In a report published Wednesday, Nomura analyst Adam Ilkowitz reiterated a Neutral rating on DISH Network Corporation DISH, and raised the price target from $41.00 to $44.00. In the report, Nomura noted, “Results for the quarter were mixed in our view, as Pay TV net adds and ARPU growth were better than expected but higher subscriber-related expenses pressured margins. Reduced churn drove the better net adds, helped by increasing Hopper penetration, though the TWC/CBS dispute probably prevented some disconnects and increased gross adds. We continue to believe video product maturity, and the lack of competitive nationwide broadband, will lead to pressure on DISH financials. With another quarter passing, DISH's options for its wireless spectrum remain available. Our 2014 revenue forecast falls from $14.65bn to $14.61bn, though we note this is due to the closure of Blockbuster offsetting higher subscriber revenue. We are raising our target price from $41 to $44 as we roll-forward our DCF analysis; the 5.5x terminal multiple and spectrum value are unchanged.” DISH Network Corporation closed on Tuesday at $50.35.