In a report released today, Benjamin Swinburne from Morgan Stanley maintained a Hold rating on Echostar (SATS – Research Report), with a price target of $25.00.
Benjamin Swinburne has given his Hold rating due to a combination of factors surrounding EchoStar’s current business dynamics and future prospects. The company’s wireless business, Boost, has shown promising growth with significant net additions and an increase in average revenue per user. However, the path to a sustainable and profitable business model remains uncertain, and the company continues to face challenges in monetizing its spectrum holdings.
Despite the positive momentum in customer growth, EchoStar’s financial outlook is clouded by ongoing free cash flow deficits and the necessity to raise additional capital by the end of 2026. The company’s reliance on third-party networks for its customer base also limits its gross margins. These factors contribute to a wide range of potential outcomes for the stock, leading to a Hold rating as the company balances its current operational challenges with its valuable assets.