We upgrade our recommendation on
DISH Network Corp.
) to Neutral. We believe that the stock is currently fairly
valued as it has moved up more than 63% in the last year. DISH
currently has a Zacks Rank #3 (Hold).
Why the Upgrade?
We believe that better pay-TV services, dishNET satellite
broadband services and strong customer faith will help the
company to improve its financial condition. Business fundamentals
remain intriguing. DISH is gradually improving its technically
superior hardware, the latest of which is the "Hooper" HD DVR
The Federal Communications Commission has allowed DISH to
deploy a nationwide wireless network with some restrictive
conditions. The company is trying to become a unique bundled
service provider of wireless voice and data together with a
strong video distribution network.
On the other hand, in Jun 2013, DISH suffered two setbacks
with respect to its plan of entering the U.S. wireless market.
First, the company decided not to pursue the acquisition of
Sprint Nextel Corp.
Second, DISH withdrew its offer to acquire the remaining 49%
stake of the wireless wholesaler,
). The deployment of a nationwide wireless network is a very
expensive and time consuming affair. DISH is yet to declare its
final stand regarding its portfolio of airwaves.
Meanwhile, DISH is looking for several options to utilize its
sizeable storage of wireless spectrums. In May 2013, the company
executed a Letter of Intent with regional wireless network
NTELOS Holdings Corp.
The two companies will deploy a fixed-mobile broadband network
to offer high-speed Internet service to areas served by NTELOS.
Accordingly, on Jun 17, 2013, the two entities jointly launched
broadband services across rural Virginia by utilizing 2.5 GHz
band of airwaves.
CLEARWIRE CORP (CLWR): Free Stock Analysis
DISH NETWORK CP (DISH): Free Stock Analysis
NTELOS HOLDINGS (NTLS): Free Stock Analysis
SPRINT NEXTEL (S): Free Stock Analysis Report
To read this article on Zacks.com click here.