Buy Dish as stock can more than double, Truist says
It’s time to bet on Dish Network as shares could more than double in the near term, according to Truist. Analyst Greg Miller upgraded the stock to buy from hold, saying in a note to clients that the stock is trading at an attractive valuation following its first investor day in over a decade. “Although DISH lacks a track record in a technical field with an unproven technology, we believe its spectrum holdings, discounted price points, rich $300b+ annual target market and potential enterprise partnerships position it well as a Buy rated stock,” he wrote. Shares of Dish have plummeted 31.3% this year, but could rally 169% based on Truist’s fresh price target of $60. The stock closed Friday at $22.30. Dish is working on its own 5G network called Project Genesis, which utilizes a type of cellular networking technology known as Open RAN . At its investor’s day, Dish failed to share a “coherent strategy” for how it plans to disrupt U.S. wireless or explain how its cost structure is better than its competitors, Miller wrote. Plus, the company is delayed in rolling out its network and indicated it will cost much more than the initially expected $10 billion. However, this new network will likely require fewer cell sites and cut costs, enabling Dish to chip away at a massive industry controlled by three big companies, he said. “Although we expect it will remain a subscale network with roaming charges that will surely consume even regional cost advantage associated with deploying the latest technology, we do expect the company to be very competitive in the markets it focuses most intently upon,” Miller wrote. — CNBC’s Michael Bloom contributed reporting
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