EchoStar stock could be the better way to own SpaceX stock.
Wednesday, Citi renewed coverage of EchoStar after a period of restriction. (Brokers can be prevented from publishing research and ratings when they are doing business with companies.)
Analyst Michael Rollins recommends buying shares. His price target is $126 per share. EchoStar stock was up 0.8% in early trading at $98.79, while the S&P 500 was down 0.5%.
Gains leave shares up about 200% over the past 12 months. EchoStar stock started moving after it sold SpaceX's wireless spectrum for billions.
Wireless spectrum consists of the radio frequencies that carry mobile calls and data. Just as radio stations need separate frequencies, wireless providers need dedicated spectrum to operate their networks.
EchoStar should receive 262 million shares of SpaceX when the deal closes in 2027. That stock is worth about $40 billion today, with SpaceX stock trading around $150. Citi analysts, however, value SpaceX at $200 a share, which would value EchoStar's stake at roughly $52 billion.
Citi's target values EchoStar at about $38 billion. Rollins applies a discount on the SpaceX stake. Still, the valuation makes the stock look attractive. (EchoStar has some debt, too.)
"We believe Echostar has become primarily an event-driven story, with investors focused on the value of its SpaceX ownership, potential future asset sales, and further optimization of its balance sheet," wrote Rollins. "Investors would like to see significant future returns of capital."
Dividends or buybacks would be a catalyst for shares, but one risk is that EchoStar invests in "long-duration investments with uncertain return prospects."
That's something to watch, but so is the underlying value of EchoStar's coming stake in Elon Musk's rocket and AI company.
Overall, seven analysts cover EchoStar, according to FactSet. Four, or 57%, rate shares Buy. The average Buy-rating ratio for stocks in the S&P 500 typically ranges from 55% to 60%. The average analyst target price for EchoStar stock is about $146.
Write to Al Root at allen.root@dowjones.com
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(END) Dow Jones Newswires
July 08, 2026 11:15 ET (15:15 GMT)
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