UBS Upgrades EchoStar Stock as SpaceX Stake Seen as Undervalued
EchoStar Communications (NASDAQ:ECHO) shares rose by 4.2% after UBS upgraded the stock with a Buy rating and set a $150 price target, citing its transformation into an investment vehicle following a major spectrum portfolio sale for approximately $43 billion. UBS highlighted that EchoStar will hold a 2% stake in SpaceX (SPACEX) worth around $39 billion based on current valuations. The firm also valued the remaining spectrum holdings at about $11 billion and noted potential value from AWS-3, E-Block, and CBRS assets. The analyst report estimated EchoStar's TV, Hughes, and Boost wireless businesses collectively at $8–$6 billion but acknowledged a significant debt burden of around $15 billion. UBS expects proceeds from the spectrum deals to be used for debt repayment and future investments in telecom, aerospace, and defense.
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