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© Reuters EchoStar Corp. (SATS) shares surge as Raymond James says it is ‘holding all of the playing cards’
Raymond James analysts upgraded shares of EchoStar Company (NASDAQ:) to Sturdy Purchase from Outperform, sustaining a $28 per share value goal on the inventory in a word to purchasers Monday.
SATS shares have surged following the improve, at the moment up greater than 20% at $23.40, at ranges final seen in June final yr.
The analysts instructed traders that SATS is “holding all of the playing cards,” resembling “money, capability, and cache of spectrum.”
“We predict the corporate is positioned very properly at a crucial juncture for the U.S. Satellite tv for pc business, pushed by vital capability being introduced on-line with the Jupiter 3 satellite tv for pc, a really robust steadiness sheet with $1.7B in money and -$0.2B in internet debt, and vital fallow S-Band spectrum holdings,” wrote the analysts.
“With the launch and deployment of Jupiter 3 (J3) satellite tv for pc, the corporate is shifting from Horizon 1 of its strategic roadmap (pre-J3) to Horizon 2 (J3 monetization) and is actively working by potentialities for Horizon 3 (long-term strategic alternatives like M&A and S-Band monetization),” they added.
The analysts concluded that following their downgrade of the inventory in November final yr, it’s “nonetheless buying and selling at a surprisingly low valuation,” whereas “a number of vital gadgets have modified.”
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