Nomura Raises Price Target On DISH Network

Nomura raised its price target on DISH Network Corp DISH Tuesday from $49 to $60 and maintained a Neutral rating.

Analyst Adam Ilkowitz focused on the value of spectrum in a research note and commented that the core DBS business valuation had not changed significantly although it fell “from $23 per share to $9 per share owing to the rising net debt after the AWS-3 auction is paid for.”

The analyst raised the valuation of the spectrum from $20 to $49 per share and included the $10 billion of AWS-3 spectrum. Ilkowitz also increased the AWS-4 valuation from $1/MHz-POP to $1.50/MHz-POP.

Related Link: 2 Very Different Takes On DISH Network's Q4.

Discussing AWS valuation, Ilkowitz noted there is a “limited marketplace” for $20 billion worth of spectrum, especially as technology solutions were expected to become cheaper.

The note also explained that spectrum was valued on a post-tax basis, “with capital gains taxes detracting $14 per share.”

The firm revised FY 2015 estimated EPS from $2.19 to $1.53 and FY 2016 estimated EPS from $2.32 to $1.78.

DISH Network recently traded at $77.62, up 0.30 percent.