Morgan Stanley has given EchoStar an 'overweight' rating and set a price target of $134, suggesting a potential upside of nearly 44% from its recent closing price. Analyst Sean Diffley noted that the current market discount on EchoStar shares is excessive, presenting an attractive entry point for investors looking to gain exposure to SpaceX through EchoStar's wireless spectrum licenses.
In September 2025, EchoStar announced a $17 billion deal with SpaceX, allowing the latter to provide Starlink services to Boost Mobile subscribers, which enhances EchoStar's value. Despite a 27% increase in EchoStar's stock over the past year, the shares have declined nearly 17% since SpaceX's IPO in June, indicating market volatility.
Morgan Stanley highlighted that EchoStar's shares have a correlation of approximately 0.66 with SpaceX, emphasizing the interconnectedness of their market performances. While there are complexities surrounding EchoStar's assets and a lack of immediate buyback plans, the firm believes the potential for significant returns justifies investment.
The consensus among analysts is positive, with six out of seven rating EchoStar as a buy or strong buy, indicating strong market confidence in the company's future prospects