A Glimpse Into The Expert Outlook On EchoStar Through 4 Analysts

Analysts' ratings for EchoStar SATS over the last quarter vary from bullish to bearish, as provided by 4 analysts.

The table below offers a condensed view of their recent ratings, showcasing the changing sentiments over the past 30 days and comparing them to the preceding months.

The 12-month price targets assessed by analysts reveal further insights, featuring an average target of $21.0, a high estimate of $37.00, and a low estimate of $12.00. Witnessing a positive shift, the current average has risen by 7.69% from the previous average price target of $19.50.

Deciphering Analyst Ratings: An In-Depth Analysis

An in-depth analysis of recent analyst actions unveils how financial experts perceive EchoStar. The following summary outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: In response to dynamic market conditions and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their reaction to recent developments related to EchoStar. This insight gives a snapshot of analysts' perspectives on the current state of the company.
• Rating: Offering insights into predictions, analysts assign qualitative values, from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of EchoStar compared to the broader market.
• Price Targets: Understanding forecasts, analysts offer estimates for EchoStar's future value. Examining the current and prior targets provides insight into analysts' changing expectations.

Navigating through these analyst evaluations alongside other financial indicators can contribute to a holistic understanding of EchoStar's market standing. Stay informed and make data-driven decisions with our Ratings Table.

Stay up to date on EchoStar analyst ratings.

Get to Know EchoStar Better

Following the Dish Network merger, satellite television provides the bulk of EchoStar's revenue. The firm serves about 6 million us customers, about 10% of the traditional television market. It launched an internet-based television offering under the Sling brand in 2015 and serves about 2 million customers on this platform. EchoStar's future, however, hinges primarily on the wireless business. The firm has amassed an extensive portfolio of spectrum licenses over the past 15 years and is building a nationwide wireless network. It acquired Sprint's prepaid business and serves about 7 million customers, primarily under the Boost brand. EchoStar's legacy businesses provide satellite telecom services and equipment to businesses and consumers, including about 1 million internet customers.

Breaking Down EchoStar's Financial Performance

Market Capitalization Analysis: Below industry benchmarks, the company's market capitalization reflects a smaller scale relative to peers. This could be attributed to factors such as growth expectations or operational capacity.

Negative Revenue Trend: Examining EchoStar's financials over 3 months reveals challenges. As of 30 June, 2024, the company experienced a decline of approximately -9.27% in revenue growth, reflecting a decrease in top-line earnings. As compared to its peers, the revenue growth lags behind its industry peers. The company achieved a growth rate lower than the average among peers in Communication Services sector.

Net Margin: EchoStar's net margin is below industry averages, indicating potential challenges in maintaining strong profitability. With a net margin of -5.2%, the company may face hurdles in effective cost management.

Return on Equity (ROE): The company's ROE is below industry benchmarks, signaling potential difficulties in efficiently using equity capital. With an ROE of -1.04%, the company may need to address challenges in generating satisfactory returns for shareholders.

Return on Assets (ROA): EchoStar's ROA is below industry standards, pointing towards difficulties in efficiently utilizing assets. With an ROA of -0.37%, the company may encounter challenges in delivering satisfactory returns from its assets.

Debt Management: EchoStar's debt-to-equity ratio is below the industry average. With a ratio of 1.27, the company relies less on debt financing, maintaining a healthier balance between debt and equity, which can be viewed positively by investors.

Understanding the Relevance of Analyst Ratings

Analysts work in banking and financial systems and typically specialize in reporting for stocks or defined sectors. Analysts may attend company conference calls and meetings, research company financial statements, and communicate with insiders to publish "analyst ratings" for stocks. Analysts typically rate each stock once per quarter.

In addition to their assessments, some analysts extend their insights by offering predictions for key metrics such as earnings, revenue, and growth estimates. This supplementary information provides further guidance for traders. It is crucial to recognize that, despite their specialization, analysts are human and can only provide forecasts based on their beliefs.

This article was generated by Benzinga's automated content engine and reviewed by an editor.