SpaceX may have finally opened its doors to public market investors, but Wall Street analysts suggest that investing in the space technology giant indirectly through EchoStar (SATS.US) is a more cost-effective approach than buying SpaceX shares directly.
Citigroup analyst Michael Rollins resumed coverage of EchoStar with a "Buy" rating and a $126 price target. He noted that the company stands to benefit over the next year as SpaceX's share price is expected to climb further and as EchoStar continues its own business restructuring.
In a report to clients dated July 7th, Rollins wrote: "We continue to believe significant value will be created from the company's continued monetization of spectrum assets, potential sales of the video business and other assets, and the after-tax value of the expected future SpaceX holdings."
EchoStar owns the Boost Mobile wireless business and satellite TV operator Dish. In 2025, the company sold a portion of its spectrum licenses to SpaceX in exchange for shares in the then-private SpaceX. Upon the expected completion of the transaction in the second half of 2027, EchoStar is slated to receive additional SpaceX shares.
Due to its SpaceX holdings, EchoStar is viewed by the market as a "proxy play" for SpaceX. From the start of the year until late May when SpaceX filed its S-1 registration statement, EchoStar's stock surged by as much as 30%. However, since SpaceX completed its record $86 billion public offering in June, EchoStar's share price has fallen nearly 24%. In contrast, the newly public SpaceX stock remains up about 13% from its IPO price.
Deutsche Bank analyst Brian Kraft also resumed coverage of EchoStar this week, issuing a "Buy" rating with a $143 price target. In his latest report, he stated that the significant divergence in the stock performance of the two companies since SpaceX's listing presents an opportunity for investors.
Kraft noted that on a per-share basis, the value of EchoStar's SpaceX holdings exceeds EchoStar's current stock price by approximately 20%. He pointed out: "This implies investors are getting all of EchoStar's other assets for nearly free, and are buying SpaceX at roughly a 20% discount."
Kraft added that this is particularly attractive for certain types of investors. He wrote: "For value funds, EchoStar could be a very good option. These funds might be reluctant to invest directly in SpaceX due to its high-growth, high-valuation profile, but can gain exposure through EchoStar at a more attractive price."
This week, as the IPO quiet period ended, major Wall Street banks began covering SpaceX, reaching a clear consensus—buy the stock. Data shows the average analyst price target is around $236, implying over 55% upside from the current share price.
The positive outlook for SpaceX's stock undoubtedly benefits EchoStar as a shareholder. Beyond its SpaceX stake, analysts believe EchoStar's remaining spectrum assets and businesses like Boost Mobile, Hughes, and Sling TV also hold upside potential.
Furthermore, Wall Street sees additional room for EchoStar's stock to rise as the discount to its net asset value narrows, tower-related litigation is resolved, and the Dish DBS bankruptcy restructuring progresses.
New Street Research analyst David Barden stated that even with Dish DBS filing for bankruptcy protection earlier this month, EchoStar's fair value could reach $165 per share, considering its SpaceX holdings. Barden wrote in his report: "At this level of discount, we view EchoStar as a highly attractive way to gain indirect exposure to SpaceX."
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