Citi initiated coverage of EchoStar with a buy rating, arguing the stock offers discounted exposure to SpaceX through the company's upcoming stake from a spectrum sale. The bank values EchoStar at $159 per share based on current SpaceX pricing, implying roughly 85% upside from recent levels.
Citi says EchoStar stock offers a discounted way to own SpaceX, valuing the satellite company at $159 per share.
"EchoStar's current stock price implies its future SpaceX stake is valued at about $86 per share, a 46% discount to the stock's closing price," Citi said in a research note.
The bank's valuation is based on the approximately 52 million SpaceX shares EchoStar is set to receive from a spectrum sale agreement. Under the deal, originally announced in September 2025 and amended in November, EchoStar agreed to sell spectrum licenses to SpaceX for roughly $19.6 billion, with about $11.1 billion paid in SpaceX Class A common stock priced at $212 a share. Applying Citi's $165 price target for SpaceX increases EchoStar's implied value to $161 per share.
EchoStar shares rose 3% Monday, while SpaceX shares gained another 20%. The stock has risen 5% this year but fallen 14% over the past month as investors sold existing space-related names including EchoStar, Rocket Lab and AST SpaceMobile to rotate capital directly into the newly public SpaceX shares.
EchoStar's traditional businesses continue to face headwinds. In the first quarter of 2026, the company lost 366,000 net pay-TV subscribers, ending the period with 6.63 million total subscribers. Pay-TV revenue declined 10% year-over-year. Its HughesNet satellite broadband business lost 58,000 subscribers during the quarter as low-Earth orbit competitors such as Starlink gained ground. Overall revenue fell 5.2% to $3.67 billion, though the company narrowed its net loss to $146.9 million from $202.7 million a year earlier.
Of the six analysts covering EchoStar, three rate it a buy and three rate it a hold, according to Koyfin data. The stock has a 12-month average price target of $137.60, representing potential upside of about 17% from the last closing price.
Retail sentiment on Stocktwits has turned extremely bullish, with message volume surging 581% over the past 30 days and 123% in the past seven days alone, according to the platform's internal data. Some users have argued EchoStar should trade above $1,430 based on the value of its SpaceX holdings.
The Citi call positions EchoStar as one of the few publicly traded vehicles for SpaceX exposure, a key differentiator as the Elon Musk-led company's valuation climbs. Investors will watch for the closing of the spectrum transaction and the subsequent distribution of SpaceX shares, which will determine the timing and magnitude of EchoStar's re-rating.
This article is for informational purposes only and does not constitute investment advice.
