EchoStar climbed by 30.94 per cent week-on-week after rallying for seven consecutive days last week, as investors took an optimistic view of SpaceX’s billion-dollar IPO plan as well as an investment firm’s bullish coverage for its stock.

On December 11th alone, EchoStar jumped to an all-time high of $109.53 (€93.13) after Bloomberg reported that Elon Musk-led SpaceX—which it is a now a useful shareholder of—would pursue an initial public offering next year in a bid to raise more than $30 billion in fresh funds.

Bloomberg said that SpaceX may list publicly in June, targeting a valuation of around $1.5 trillion. EchoStar, which currently owns $11.1 billion worth of SpaceX stock, stands to benefit from the IPO as it could substantially unlock the value of its investment.

In other news, EchoStar earned a higher price target of $110 from Morgan Stanley, versus $82 previously, as well as a rating upgrade of ‘overweight’ versus ‘equal weight’ prior.

According to the investment bank, EchoStar stands to benefit from the increasing competition in US wireless carriers.

“Spectrum is an appreciating asset, and we expect both Verizon and T-Mobile to be aggressive in pursuing the remaining paired AWS-3 holdings at EchoStar,” the bank said.

Other posts by :

1. Norway wants a satellite constellation
2. Crossroads backs AST SpaceMobile
3. FCC examines SpaceX’s 15,000 sat-constellation plan
4. EchoStar: “Severe uncertainty” led to spectrum sales
5. Netflix gets downgrade on Warner Bros move
6. UK trims Orbex investment
7. Euro-bank sets up €500m space fund
8. Revenue jump forecast for Eutelsat
9. Moody’s upgrades Eutelsat’s debt rating

Categories: Blogs, Business, Inside Satellite

Tags: Echostar, spacex