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http://advisers.com/sat12.htm
From: "SkyREPORT"
08/21/2008 - A Wall Street Downgrade for DISH
A Wall Street firm on Wednesday released a less than promising outlook for the nation's No. 2 satellite TV service.
Craig Moffett of Bernstein Research downgraded DISH from "market perform" to "underperform," and reduced his target price on the DBS company's shares to $25. In his note detailing the downgrade, Moffett cited continued weak operations, declining steady state cash flow (Bernstein's primary basis of valuation), and "worsening satellite sector headwinds."
The analyst also pointed out the legal challenges facing DISH, including the ongoing TiVo litigation.
"Positioned at the low-end of the market, DISH Network's business has deteriorated sharply. Churn has spiked higher. Share of gross additions has fallen. Customer satisfaction scores have declined," Moffett said.
In addition, the analyst pointed to recent lackluster subscriber trends, including a customer loss in the second quarter. As for competition, Moffett said the "satellite sector headwinds are mounting, with the telcos increasingly positioned as competitors rather than distributors."
During trading Wednesday, DISH shares fell nearly 4 percent to $28.84.
http://advisers.com/sat12.htm
From: "SkyREPORT"
08/21/2008 - A Wall Street Downgrade for DISH
A Wall Street firm on Wednesday released a less than promising outlook for the nation's No. 2 satellite TV service.
Craig Moffett of Bernstein Research downgraded DISH from "market perform" to "underperform," and reduced his target price on the DBS company's shares to $25. In his note detailing the downgrade, Moffett cited continued weak operations, declining steady state cash flow (Bernstein's primary basis of valuation), and "worsening satellite sector headwinds."
The analyst also pointed out the legal challenges facing DISH, including the ongoing TiVo litigation.
"Positioned at the low-end of the market, DISH Network's business has deteriorated sharply. Churn has spiked higher. Share of gross additions has fallen. Customer satisfaction scores have declined," Moffett said.
In addition, the analyst pointed to recent lackluster subscriber trends, including a customer loss in the second quarter. As for competition, Moffett said the "satellite sector headwinds are mounting, with the telcos increasingly positioned as competitors rather than distributors."
During trading Wednesday, DISH shares fell nearly 4 percent to $28.84.
