Citi Raises EchoStar PT to $67, Maintains Neutral Rating

Citi analyst Michael Rollins raised EchoStar Corp's (NASDAQ:SATS) price target to $67 from $28.50, keeping a Neutral rating. The firm updated its model to account for the spectrum sale to AT&T. EchoStar Corp is a provider of TV entertainment, networking services, and technology with brands including EchoStar, Sling TV, DISH TV, and Hughes.

Citi analyst Michael Rollins has significantly raised the price target for EchoStar Corp (NASDAQ: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 [1].

The spectrum sale involves the transfer 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 [2].

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. Despite the stock's volatility, with 36 moves greater than 5% in the past year, the recent deal has significantly impacted the market's perception of the business [1]. 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://www.ainvest.com/news/citi-raises-echostar-price-target-67-2508/
[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/