Deutsche Bank, Citi restart EchoStar coverage with buy ratings; see up to 40% upside

According to CNBC, Deutsche Bank and Citi reinstated coverage of EchoStar with buy ratings on Tuesday, with Deutsche Bank setting a $143 price target (about 40% upside from Monday’s close) and Citi setting a $126 target (about 28% upside). CNBC said EchoStar shares have fallen more than 30% from their 52-week high and were last up 2% in midday trading, after its pay TV subsidiary Dish DBS filed for Chapter 11 bankruptcy last month following deferred debt payments. Analysts cited EchoStar’s exposure to SpaceX, with Deutsche Bank Research estimating EchoStar’s $42.4 billion stake in SpaceX represents about 65% of EchoStar’s total net asset value and equates to $121.46 per EchoStar share versus around $100 on Tuesday, implying a roughly 20% discount; CNBC also reported SpaceX shares traded around $150 on Tuesday and were down more than 5%.