Wunderlich: Dish Still A 'Sell'

In a report published Tuesday, Wunderlich analysts maintained a Sell rating on

, while reducing the price target from $67 to $65. The analysts believe that spectrum has "much greater value" when owned by

or

and that "the AWS-3 auction results were noisy, especially off the bidding tactics from Northstar Wireless and SNR Wireless - even if conduct was likely within the (peculiar) rules." The total spectrum position is estimated at $44.5B and a 50 percent monetization is assumed, with a 30 percent 2015 discount for taxes, timing and control issues. In the report Wunderlich noted, "There is an active struggle for technology advancement, with Ergen understandably pushing for inclusion of all AWS spectrum within 3GPP standardization. There is consequently a race between the ability for DISH to leapfrog current technology and the aggressive upgrade paths followed by Verizon and AT&T - including small cell approaches that are appropriate for 5G. Aggressive capacity assumptions for DISH's spectrum essentially being able to address U.S. mobile demand suggest spectrum glut and disruption, not shortage." The analysts expect Designated Entities (DE) SNR Wireless and Northstar Wireless, each of which is owned 85 percent by DISH Network, to realize their $3 billion small business AWS-3 spectrum discounts.