By Senad Karaahmetovic
Truist Securities analyst Greg Miller upgraded DISH Network (NASDAQ:DISH) to Buy from Hold with a $60.00 per share price target, up from $25.00.
The analyst says investor expectations are “greatly diminished” after the recent Analyst Day. However, he adds that “we have witnessed the confusing low-point in the stock that should improve with share gains.”
“Although we believe the company failed to communicate a cohesive go-to-market strategy at its investor day (with the stock trading >30% lower during the session), or even highlight tangible successes it has already made with its Las Vegas launch (with read through to other markets), we are still confident subsequent launches will produce solid results,” Miller said in a client note.
A clear positive is that the company is improving its communication with investors. On the business side, Miller says the disruption is “likely.”
“We do not expect to witness demonstrable proof of a superior cost structure of its cloud native, O-RAN network anytime in the near to intermediate term future. With 2/3 of the country on roaming, we believe it is foolish to even suggest it. Even so, with a market that generates more than $300bn in annual revenues at >70% gross margin, the market is ripe for disruption, in our opinion.”
Miller sees improving momentum, especially in the context of Project Genesis.
Finally, the analyst sees an attractive valuation, hence the new price target implying a potential 170% upside from current levels.
Dish shares are up 4% in pre-market today.