Dish Network's Bull Case Is Still Too Tough To Call, Says Macquarie

Macquarie Research's Amy Yong reiterated Dish Network Corp (NASDAQ: DISH)'s Neutral rating with a price target of $62.00 coming just before Dish's second quasi-Analyst Day.

The Broadcast Incentive Auction beginning Tuesday could provide growth for Dish, according to the analyst. Since Liberty Global plc (NASDAQ: LBTYA) (NASDAQ: LBTYK) (NASDAQ: LBTYB) and Alphabet Inc (NASDAQ: GOOG) (NASDAQ: GOOGL) are no longer expected to participate in the bid, Yong lowered her auction estimate to $35–40 billion, limiting competition between AT&T Inc. (NYSE: T), Verizon Communications Inc. (NYSE: VZ), T-Mobile US Inc (NASDAQ: TMUS), Comcast Corporation (NASDAQ: CMSCA) and Dish.

Related Link: Kerrisdale's Latest: Dish Network Improperly Deducting $1 Billion In Taxes

Additionally, further catalysts for the company could include:

• 30 percent chance of a Spectrum lease and Pay TV spinoff, "which could bring the stock to ~$730.00."
• 30 percent chance of a Dish, T-Mobile merger bringing the stock price up to $66.00
• 30 percent chance of a Verizon or AT&T acquisition at $75.00.
• 10 percent chance of organically "building out the network" at ~5 percent p.a., which "could bring the stock down to ~$19.00."

Based on the analyst's probabilities listed above, Yong's scenario analysis values Dish at about $61.00.