Dish Network stock (NASDAQ
Dish’s satellite TV business has been facing a secular decline, due to cord-cutting. Over Q4 2022, the company lost a net of 268,000 pay-TV subscribers. Things could remain tough over Q1, as Dish faced a cybersecurity attack in late February, which impacted its internal communications, call centers as well as applications, and websites. The attack apparently disrupted the company’s customer onboarding, bill payments, and customer care operations for almost three weeks. This could potentially hurt the company’s subscriber onboarding and revenues to an extent. Dish’s wireless business – which presently comprises the Boost Mobile MVNO – lost about 24,000 subscribers in Q4 and it’s very likely that losses will be higher over Q1.
Dish stock has lost about half of its value this year, falling to about $7 per share due to the cyberattack and rising interest rates, which are seen as a negative for the highly leveraged company. However, we have a $14 price estimate for Dish that is well ahead of the current market price. While we will be revisiting our price estimate for the stock following earnings, we think that there is value in the stock at current levels. We think Dish’s valuation could be supported by its upside potential from its 5G wireless rollout as well as its massive spectrum holdings. The company holds around 150 MHz of sub-6 GHz frequency, compared to Verizon and AT&T
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