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Credit Suisse upgrades Dish Network, says beaten-down stock can double from here
The pullback for shares of Dish Network has gone far enough, according to Credit Suisse. Analyst Douglas Mitchelson upgraded Dish to outperform from neutral, saying that the company’s ongoing buildout of its wireless network was undervalued by the current stock price. “We think the opportunity to invest in DISH’s greenfield Cloud O-RAN 5G wireless network, backed by more sub-6 GHz spectrum than market leader Verizon had been using until just recently, at an equity value equal to half a year of AT & T capex or one-fifth of the cost for Verizon to buy & build C-Band, is too good for investors to pass up,” Mitchelson wrote. On Friday, Dish reported revenue, earnings and pay-TV subscribers that were all down from the first quarter of 2021. The stock sank 19%. The company also said it may need to raise additional cash, but Mitchelson said that shouldn’t be a cause for concern. “DISH disclosed in its 10 -Q it intends to raise capital, but investors might be misreading DISH’s capital raising needs. As noted, management clarified the disclosure as the need to roll over its $1.5 B of 2023 DISH DBS bonds. We had thought the analyst day was for equity investors, but we now wonder if it’s perhaps more for the debt market,” Mitchelson wrote. Credit Suisse maintained its price target on Dish to $45 per share, which is more than double where the stock closed on Friday. However, not every analyst is ready to recommend Dish. JPMorgan analyst Philip Cusick downgraded the stock to neutral from overweight on Monday morning, saying in a note that there was no obvious path for investors to get excited about the company. — CNBC’s Michael Bloom contributed to this report.
Dish Networks exhibit at CES 2016 in Las Vegas.
Justin Solomon | CNBC
The pullback for shares of Dish Network has gone far enough, according to Credit Suisse.
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