Key Highlights

  • ECHO shares rose 4.63% pre-market to $90.39, up $4.00 from the prior close of $86.39.
  • JPMorgan upgraded the stock and set a $144 price target.
  • JPMorgan argues the shares trade at about a 40% discount to net asset value.
  • EchoStar is expected to hold about 261.8 million SpaceX shares.
  • Spectrum sales to AT&T and SpaceX total more than $20 billion.

SpaceX Blowout Lifts the Value Story at EchoStar

EchoStar (NASDAQ:ECHO) shares rose 4.63% pre-market today to $90.39, a gain of $4.00 from the prior close of $86.39. The shares jumped about 5% after hours as SpaceX (NASDAQ:SPCX) reported blowout third-quarter results, with revenue up roughly 161%, and SpaceX stock rose 3% to 4% late in the session.

JPMorgan recently upgraded EchoStar with a $144 price target. The bank argues the shares trade at roughly a 40% discount to net asset value, driven by an expected stake of about 261.8 million SpaceX shares and spectrum sales of more than $20 billion to AT&T (NYSE:T) and SpaceX.

EchoStar, headquartered in Englewood, Colorado, is a diversified communications company with three segments: Pay-TV, Retail Wireless, and Broadband and Satellite Services. Its brands include DISH, Sling TV, Boost Mobile and Hughes/HughesNet. Following the 2023 recombination with DISH Network, it has about 12,100 employees and roughly $15 billion in annual revenue.

Risks: Late-2027 Close and a Possible Spectrum Bid

Risks include the SpaceX deal not closing until late 2027 and a possible European mobile satellite spectrum bid by major telecom operators ahead of the expiry of EchoStar's 2GHz licence in May 2027.

Financial Snapshot: Loss and a Wide Range

EchoStar reports a loss of $25.03 per share and a forward P/E of 23.01. The 52-week range runs from $65.76 to $147.25, so the shares remain far below their high.

Next Up: SpaceX Deal Progress

The pop reflects the read-through from SpaceX's results rather than EchoStar news. Investors will watch progress toward closing the SpaceX transactions, any spectrum bids in Europe, and further moves in SpaceX shares that affect the value of the stake.