Update shared on11 Sep 2025
Fair value Increased 81%Despite a notable downgrade in revenue growth forecasts and a higher expected future P/E, the consensus analyst price target for EchoStar has sharply increased from $45.21 to $81.71.
What's in the News
- EchoStar has agreed to sell its 3.45 GHz and 600 MHz spectrum licenses (50 MHz nationwide) to AT&T for approximately $23 billion, pending regulatory approval.
- The transaction includes amendments to the network services agreement, forming a hybrid mobile network operator relationship between EchoStar and AT&T.
- Boost Mobile subscribers will utilize AT&T's nationwide network as primary connectivity while maintaining access to T-Mobile; components of Boost Mobile's radio access network will be decommissioned over time, with no service interruptions.
- AT&T expects the spectrum acquisition to strengthen its 5G and fiber offerings, accelerate converged subscriber growth, and enhance network efficiency by reducing future need for new cell sites.
- AT&T will finance the purchase with cash and borrowings; net debt-to-adjusted EBITDA is expected to rise to 3x post-transaction and return to 2.5x within three years while maintaining capital return plans.
Valuation Changes
Summary of Valuation Changes for EchoStar
- The Consensus Analyst Price Target has significantly risen from $45.21 to $81.71.
- The Consensus Revenue Growth forecasts for EchoStar has significantly fallen from 0.0% per annum to -1.0% per annum.
- The Future P/E for EchoStar has significantly risen from 13.93x to 23.64x.
Disclaimer
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