SATS

EchoStar Corp.

TMT, Consumer


Presented:04/11/2018
Price:$54.98
Cap:$5.33B
Current Price:$25.79
Cap:$7.01B

Presented

Date04/11/2018
Price$54.98
Market Cap$5.33B
Ent Value$6.21B
P/E Ratio13.51x
Book Value$43.44
Div Yield0%
Shares O/S96.98M
Ave Daily Vol194,659
Short IntN/A

Current

Price$25.79
Market Cap$7.01B
EchoStar Corp. engages in the design, development, and distribution of digital set-top boxes and products for direct-to-home satellite service providers. It operates through the following business segments: Hughes, and EchoStar Satellite Services. The Hughes segment provides broadband satellite technologies and broadband services to home and small office customers and network technologies, managed services, and communication solutions. The ESS segment owns and leases in-orbit satellites and licenses to lease capacity on a full time and occasional use. The company was founded by Charlie William Ergen in October 2007 and is headquartered in Englewood, CO.

Publicly traded companies mentioned herein: Centurylink Inc (CTL), DISH Network Corp (DISH), Echostar Corp (SATS), Inmarsat Plc (ISAT LN), ViaSat Inc (VSAT)

Highlights

The presenter is long shares of Echostar (SATS), expecting EBITDA to ramp over the coming years as the recently launched Jupiter-2 satellite fills up on subs. In addition, he sees material upside from SATS’s S-band spectrum holdings in Europe, which could be realized in the lead-up to the 2020 – 2021 5G rollout. The presenter thinks pushbacks around low-earth orbit satellites displacing SATS are unfounded. He targets $100 share price on 8x 2019 EBITDA, with upside optionality from the S-band spectrum and deployment of the balance sheet.

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Idea Discussion

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