Don't Expect Dish Network To Hit 'Cruising Speed' Until 2024, Analyst Says

Shares of Dish Network Corp DISH crashed in early trading on Tuesday, after declining last week.

While the company has spent heavily on building its own wireless network, facing several technological challenges, it is unlikely to “hit cruising speed until 2024," according to BofA Securities.

The Analyst: David Barden downgraded the rating for Dish Network from Buy to Underperform, while slashing the price target from $30 to $10.

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The Thesis: Opportunities to leverage the 5G wireless infrastructure now seems “further away” for the company, Barden said in the downgrade note.

“Once the network is operational and at scale, the company would need to still prove it could form meaningful partnerships in an industry with established players chasing similar opportunities,” he said.

“We expect declining EBITDA due to adverse pay-TV trends, higher marketing expenses and inflationary pressure,” Barden stated. “Coupled with elevated capex, FCF trends are increasingly negative for the next 2 years."

DISH Price Action: Shares of Dish Network had declined by 4.59% to $11.64 at the time of publication Tuesday.