DISH’s Free HD Service To Affect EBITDA And FCF Margins

Analysts at Collins Stewart maintain their "buy" rating on Dish Network DISH. The target price for DISH is set to $30. DISH has started a promotion, which offers free HD service to new subscribers. According to the analysts, “Although this promo may increase HD subscribers, it will likely come at the expense of higher subscriber acquisition costs (SAC) and therefore, may impact EBITDA and FCF margins. Furthermore, this promotion may reflect weaker than expected HD subscriber additions.” “We learned that TiVo Inc.'s TIVO legal victory against Dish Network Corp. and EchoStar Corp. for infringing a patent on digital video recording services will be reconsidered by an appeals court.. Although DISH’s negotiating position improves with this turn of events, we expect that DISH will ultimately pay a license fee to TIVO when all legal alternatives are finally exhausted,” Collins Stewart mentions. More Analyst Ratings here