EchoStar Corporation: Moving to an Overweight Rating and a $144 Price Target from Not Rated

Following a period of restriction, we reinstate coverage of EchoStar (ECHO) with an Overweight rating and a December 2027 price target of $144 (from UW and $12 prior to restriction). The ~$43bn sale of spectrum to AT&T and SpaceX has de-risked the balance sheet and transformed EchoStar into an investment company with meaningful opportunities to unlock value. Shares trade at a 40% discount to our estimated NAV, which we view as unwarranted and a compelling near-term opportunity. Our sum-of-the-parts target reflects: a $62.8bn SpaceX stake (261.8m shares at our $240 Dec-27 SpaceX price target), $8.5bn cash from SpaceX at deal close, $23bn of proceeds from the closed AT&T spectrum sale, $11.3bn for remaining spectrum net of taxes, and $6.6bn for remaining operating businesses;