Citi Raises EchoStar Price Target to $67

Citi analyst Michael Rollins raised the price target on EchoStar (SATS) to $67 from $28.50 and maintained a Neutral rating. The update reflects the spectrum sale to AT&T.

Citi analyst Michael Rollins has significantly raised the price target for EchoStar (SATS) to $67 from $28.50, maintaining a Neutral rating on the stock. The update reflects the company's recent spectrum sale to AT&T, which is expected to close by mid-2026, subject to regulatory approval [3].

The transaction involves the sale of 50 MHz of wireless spectrum, including 30 MHz of 3.45 GHz mid-band and 20 MHz of 600 MHz low-band licenses, covering over 400 U.S. markets. This deal provides AT&T with valuable spectrum to enhance its 5G and broadband services, while also resolving an ongoing Federal Communications Commission (FCC) review into EchoStar's spectrum buildout [3].

EchoStar's stock surged 76% on Tuesday following the announcement, with shares trading at $57.59, a new 52-week high. The company plans to use the proceeds from the sale to pay down debt and support its operations and growth [3]. The deal has also repositioned EchoStar as a hybrid mobile network operator, allowing its Boost Mobile wireless service to continue operating on AT&T's network [4].

The spectrum sale has eliminated a significant portion of EchoStar's debt, positioning the company financially stronger. EchoStar's stock has been extremely volatile, with 36 moves greater than 5% in the past year, but the recent deal has significantly impacted the market's perception of the business [1]. Despite the volatility, EchoStar's stock has surged 153% since the beginning of the year, with investors who bought $1,000 worth of shares five years ago now looking at an investment worth $1,945 [1].

The updated price target reflects Citi's view that the spectrum sale unlocks significant value for EchoStar, enhancing its financial position and strategic partnership with AT&T. However, the Neutral rating indicates that the firm remains cautious about the potential risks and challenges in the competitive wireless sector [2].

References:
[1] https://finance.yahoo.com/news/why-echostar-sats-stock-today-163043242.html
[2] https://www.tipranks.com/news/the-fly/echostar-price-target-raised-to-67-from-28-50-at-citi-thefly
[3] https://www.tradingview.com/news/gurufocus:73249a5d8094b:0-sats-echostar-stock-massive-rally-after-23-billion-spectrum-sale-to-at-t/
[4] https://www.ainvest.com/news/echostar-sats-surges-8-50-23-billion-sale-resolves-regulatory-risks-2508/