Bloomberg the Company & Products

Bloomberg Anywhere Login

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Communications

Industry Products

Media Services

Follow Us

Markets & Finance

Merrill Keeps Buy on EchoStar


Merrill Lynch reiterates its buy rating on EchoStar Communications (DISH).

Vivendi Universal will sell its 10% stake in EchoStar to the company for $1.066 billion cash, or $18.50 per share, a 15% discount to Tuesday's close, well below Vivendi's $26 per EchoStar share purchase price.

Analyst Marc Nabi says he views the removal of the Vivendi overhang as an extremely positive, accretive transaction. He notes this information was not widely expected by investors. Adjusting for the transaction, he raised his year-end 2003 discounted cash flow valuation for EchoStar by $2 to $30 -- 17.8 times the 2003 EBITDA estimate.

Nabi also upgraded the 2004 earnings per share estimate by three cents to $1.07. He says EchoStar is his favorite name in the satellite communications space.


LIMITED-TIME OFFER SUBSCRIBE NOW
 
blog comments powered by Disqus