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Investing.com - TD Cowen has significantly raised its price target on Echostar Holdings (NASDAQ:SATS) to $67.00 from $28.00 while maintaining a Buy rating on the stock. The company’s shares, currently trading at $55.11, have surged nearly 84% in the past week, according to InvestingPro data.
The price target increase follows Echostar’s announcement of a spectrum sale to AT&T, in which the company will divest approximately 38% of its spectrum holdings for $22.6 billion, representing a value of about $1.40 per MHz-POP.
TD Cowen cited three primary drivers for the substantial price target revision: the company’s ability to largely clear its $27 billion debt stack, the newly unlocked ability to sell spectrum to major carriers, and a re-rating of Echostar’s existing spectrum based on the $1.40+ value marker established by the AT&T deal.
The firm had previously valued Echostar’s spectrum at approximately $0.70 per MHz-POP to account for balance sheet challenges and selling restrictions, but has now revised this valuation to $1.50 per MHz-POP following the elimination of these risks.
The research note also mentioned that Echostar could potentially sell its PayTV business to DirecTV in the future as part of its transformation toward wireless and space direct-to-device services.
In other recent news, EchoStar Corporation reported its Q2 2025 earnings, which revealed a revenue shortfall. The company posted earnings per share of -$1.06, slightly below the forecast of -$1.01, and revenue came in at $3.72 billion, missing the anticipated $3.82 billion. This resulted in a negative surprise of -2.62%. Meanwhile, AT&T announced its plan to acquire spectrum licenses from EchoStar as part of its investment in U.S. communications infrastructure. The deal, valued at approximately $23 billion, aligns with AT&T’s strategy to enhance its connectivity offerings. Following the AT&T deal, BofA Securities downgraded SBA Communications from Buy to Neutral, citing potential impacts on network densification efforts. Additionally, T-Mobile and Elon Musk’s Starlink have expressed interest in acquiring spectrum controlled by EchoStar. In other developments, Sling TV introduced new short-term streaming options, including a $4.99 Day Pass, offering contract-free access to live TV content.
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