EchoStar's stock looks like a stealthy way to ride the SpaceX wave, J.P. Morgan says

By William Gavin

Investors aren't giving EchoStar enough credit for the value of its future SpaceX stake or its potential to strike more spectrum deals, an analyst argues

Spectrum is an increasingly hot commodity in today's market.

EchoStar shares have room to surge as much as 67%, argues a newly bullish J.P. Morgan analyst - and SpaceX could be a big driver of that.

Part of that upbeat thesis stems from the fact that EchoStar (ECHO), a satellite-communications company, plans to sell SpaceX (SPCX) about $20 billion worth of spectrum licenses in a deal set to close in late 2027, pending regulatory approval. In return, the company is set to receive about $8.5 billion in cash and 261.8 million SpaceX shares - a future stake that J.P. Morgan's Sebastiano Petti said is being undervalued.

Petti estimates that EchoStar's stake in SpaceX is currently worth about $38.9 billion, or $62.8 billion if J.P. Morgan's $240-a-share price target for SpaceX comes to fruition. That stake, combined with its $23 billion sale of Spectrum rights to AT&T (T) in July, has made EchoStar's stock worth a fresh look, according to Petti.

The moves have removed risk from the balance sheet "and transformed EchoStar into an investment company with meaningful further opportunities to unlock value," he wrote in a note to clients on Friday while relaunching J.P. Morgan's coverage of the company, which was briefly restricted.

Petti rates EchoStar's stock at overweight with a $144 price target. As of December 2025, J.P. Morgan had rated the stock at the equivalent of a sell with a $12-a-share target.

J.P. Morgan sees a few potential catalysts for the stock, including SpaceX's own shares gaining in value. SpaceX's stock has mostly stabilized following a few months of turbulence in the aftermath of its initial public offering, and the company is due to report third-quarter earnings next week.

SpaceX may also be interested in acquiring more of EchoStar's remaining spectrum as it seeks to take on AT&T, T-Mobile US (TMUS) and Verizon Communications (VZ) with its Starlink satellite-internet service, Petti noted. SpaceX last week announced it would buy some low-band spectrum from Grain Management, moving it closer to becoming a "major mobile carrier."

Verizon and AT&T may also be interested in some of those licenses, which altogether are valued at $11.3 billion, according to Petti. Cable giants Charter Communications (CHTR) and Comcast (CMCSA) may be intrigued as well, he wrote.

Outside of those areas, EchoStar doesn't have too much going for it, according to J.P. Morgan's analysis. Petti valued its remaining operating business at just $6.6 billion, calling mergers-and-acquisitions activity the "primary upside catalyst." The analyst ascribed a $973 million valuation to EchoStar's broadband and satellite businesses, while calling its wireless division "not worthless."

In August, EchoStar's Hughes Network Systems filed for Chapter 11 bankruptcy protection, shortly after its Dish Wireless and Dish DBS subsidiaries had done so. Dish emerged from bankruptcy earlier this month.

From the archives (July 2026): EchoStar's stock has fallen alongside SpaceX's - but it may now be worth another look

-William Gavin

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10-16-26 1605ET