DirecTV Growth Could Pressure EchoStar Shares
01.19.05, 9:40 AM ET
Prudential Equity Group initiated coverage of EchoStar Communications (nasdaq: DISH - news - people ) at "underweight" with a 12-month price target of $35. Prudential is "neutral" on the outlook for the satellite broadcasting industry, but EchoStar's rating "is meant to emphasize that we favor the DirecTV (nyse: DTV - news - people ) shares over the EchoStar shares over the next 12 months." The research firm rates DirecTV at "overweight." Prudential cited three reasons for the "underweight" rating on EchoStar: its "fuller" valuation, slower subscriber growth rate and lack of a "communicated local" high-definition strategy. "Despite the rating, we think EchoStar's management has done a fantastic job of executing and managing its operations very effectively," the firm said. "But we also think DirecTV's cheaper valuation. . .coupled with our expectation of faster subscriber growth at DirecTV will likely keep a lid on the EchoStar shares."
http://www.forbes.com/markets/currencies/2005/01/19/0119automarketscan02.html
01.19.05, 9:40 AM ET
Prudential Equity Group initiated coverage of EchoStar Communications (nasdaq: DISH - news - people ) at "underweight" with a 12-month price target of $35. Prudential is "neutral" on the outlook for the satellite broadcasting industry, but EchoStar's rating "is meant to emphasize that we favor the DirecTV (nyse: DTV - news - people ) shares over the EchoStar shares over the next 12 months." The research firm rates DirecTV at "overweight." Prudential cited three reasons for the "underweight" rating on EchoStar: its "fuller" valuation, slower subscriber growth rate and lack of a "communicated local" high-definition strategy. "Despite the rating, we think EchoStar's management has done a fantastic job of executing and managing its operations very effectively," the firm said. "But we also think DirecTV's cheaper valuation. . .coupled with our expectation of faster subscriber growth at DirecTV will likely keep a lid on the EchoStar shares."
http://www.forbes.com/markets/currencies/2005/01/19/0119automarketscan02.html
