Wunderlich Securities Sees DISH Network Valuations Getting Naively Optimistic

In a report published Monday, Wunderlich Securities analyst Matthew Harrigan reiterated a Hold rating and $56.00 price target on

. In the report, Wunderlich Securities noted, “Hold-rated DISH Network (DISH) shares may rise off a Barron's article citing 20%+ upside on spectrum valuation relative to the November 2014 AWS-3 FCC auction. (The auction floor is $10.1B, or near $0.50 per MHz-pop for 65 MHz across 320mm pops). "Barron's cites an aggressive approach that artificially carves out spectrum values for AT&T (T-NR) and Verizon (VZ-NR) sans their dominant mobile businesses at assessments of $2.72-$3.52 per Mhz-pop vs. past auction prices nearer $1. The resultant DISH spectrum valuation at $25B+ aftertax (with a mild discount) seems high, especially with VZ supposedly having had interest in May at $17B pre-tax. We are already carrying a $19.5B pre-tax sale valuation, with the alternative shared network approach at $14.3B in recognition of development risks.” DISH Network closed on Thursday at $66.37.