Analyst Note| Michael Hodel, CFA |
While most of the attention around Dish Network has centered on its partnership with Amazon’s AWS and plans to launch a wireless network in Las Vegas later this year, the firm’s operating businesses quietly put up surprisingly strong first-quarter results. With margins at both the television and wireless businesses coming in stronger than we anticipated, Dish will likely generate more cash over the next couple years than we’d forecast. That cash should reduce the funding risk behind the wireless network buildout. We’re increasing our fair value estimate to $43 from $35 as a result, though we continue to caution investors that the range of potential outcomes around Dish remains very wide.