Dish Drops on JPMorgan Downgrade

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Dish Drops on JPMorgan Downgrade
Credit: © Reuters.

By Christiana Sciaudone -- Dish Network (NASDAQ: DISH ) dropped more than 5% after getting a downgrade from JPMorgan (NYSE: JPM ).

Analyst Philip Cusick lowered the rating to a sell-equivalent from neutral with a price target of $45, up from $38, StreetInsider reported.

"We believe Dish has the opportunity to disrupt the wireless ecosystem through its next-generation 5G network over the next several years, leveraging its MVNO with the New TMobile. However, we expect some near-term execution challenges," Cusick wrote in a note. "While the PayTV ecosystem remains pressured, Dish has posted solid results that we attribute to its disciplined acquisition and retention strategy."”

The company's unlikely to participate in any mergers or acquisitions in the near future, but a combination of Dish and AT&T Inc (NYSE: T )’s video operations over the next several years given the structural disadvantages for satellite video could be possible.

Cusick's is one of two sell ratings on the company, which also has four buys and four holds, according to data compiled by

Last month, Benchmark initiated coverage with a buy rating.

Analyst Matt Harrigan noted that the new network is more cost efficient as it does not have to support legacy 3G/4G infrastructure, StreetInsider reported. 

Dish is collaborating with Amazon (NASDAQ: AMZN ) Web Services and has access to its advanced cloud capabilities, making it able to offer superior data capacity with significantly better pricing compared to the Big Three U.S. wireless carriers, Harrigan wrote in a note. 

"Beyond consumer mobile, Dish is especially well positioned to benefit from the nascent 5G enterprise wholesale business," Harrigan said.  




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