UPDATE: Citi Upgrades DISH Network

In a note dated June 22, Citi analyst Jason Bazinet upgraded shares of DISH Network (NASDAQ: DISH) from Neutral to Buy and raised the price target from $61 to 79.

The upgrade comes amid the firm's exploration into spectrum values prior to the AWS-3 spectrum auction planned for November 13, 2014.

Bazinet noted there are two ways to assess spectrum values: 1) use historical auctions and 2) determine the economic value by the costs carriers would avoid if they were to build new cell sites to match capacity gains from new spectrum.

By using the second method, Bazinet determined the value of spectrum to be $1.97 per MHs-POP for a 10x10 block and $1.20 per 5x5 block. He further explained that due to the high proportion of Dish's asymmetric downlink spectrum, it will trade at a premium to AWS-3.

He concluded by noting this premium is the basis for the upgrade and raised price target.

Shares of Dish are up ~2 percent following the Citi upgrade.