Buy DISH Network On 5G Prospects, Benchmark Says

DISH Network Corp’s (NASDAQ: DISH) new network is a U.S.-based 5G, which is more cost-efficient because it doesn't have to support the legacy 3G or 4G infrastructure, according to Benchmark.

The DISH Network Analyst: Matthew Harrigan initiated coverage of DISH Network with a Buy rating and a price target of $62.

The DISH Network Thesis: The new 5G network is built in collaboration with Amazon.com, Inc’s (NASDAQ: AMZN) AWS, which provides access to its advanced cloud capabilities, Harrigan said in the initiation note.

“The network should be able to offer superior data capacity with significantly better pricing compared to the Big Three U.S. wireless carriers. Beyond consumer mobile, Dish is especially well positioned to benefit from the nascent 5G enterprise wholesale business,” the analyst wrote.

“Although the DOJ ruled in 2019 in a consent decree that Dish cannot sell spectrum for six years and has to deploy it in a viable network before it can be sold, the spectrum and network could still have significant value to a telecom buyer," Harrigan stated. "Continued strong spectrum auction results as with the $90B January 2021 C-Band result (inclusive of accelerated relocation payments) should ensure that Dish’s 100+ MHz spectrum ownership somewhat underpins valuation,”

He expects the 5G launch in Las Vegas in the third quarter of 2021 to be a catalyst.

DISH Price Action: Shares of DISH Network had risen by 0.73% to $44.37 at the time of publication Friday morning.

(Photo: DISH Network)