Raymond James upgraded EchoStar Corporation (NASDAQ: ECHO) to Strong Buy from Market Perform. The investment firm set a new price target of $115.00.
Analysis indicates the stock trades at an approximate 40% discount to its $153 sum-of-the-parts valuation. This valuation suggests a potential 67% upside from current trading levels.
The upgrade follows a period of significant financial restructuring. EchoStar subsidiary DISH DBS Corporation recently filed for Chapter 11 bankruptcy protection.
Investors continue to debate the valuation of EchoStar’s significant spectrum assets and its stake in SpaceX. Although the stock performed well over the past year, it hit a year-to-date low immediately prior to the upgrade.