What’s There to Like at Dish Network?


May. 7 2019, Published 1:55 p.m. ET

Dish bears the brunt of the cord-cutting phenomenon

Each time Dish Network (DISH) reports its quarterly results, it leaves investors asking when its business condition will improve. It appears that few major media companies have seen the worst of the shrinking pay-TV market more than Dish. The company has been losing pay-TV subscribers in the hundreds of thousands every three months.

For the latest period, Dish reported losing 259,000 pay-TV customers in the first quarter. AT&T (T) lost 627,000 pay-TV customers in the same period. Charter Communications (CHTR), Comcast (CMCSA), and Altice (ATUS) reported losing 145,000, 121,000, and 10,000 pay-TV customers, respectively, in the first quarter.

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Dish is approaching a turning point

As much as Dish has been one of the leading companies in terms of pay-TV customer losses, a turning point for the company isn’t far off. Credit Suisse recently upgraded its stock rating and raised its price target on Dish, according to a note to investors cited by CNBC. According to Credit Suisse, Dish’s subscriber losses will slow dramatically in the second half of 2019.

Credit Suisse upgraded Dish to a “neutral” from an “underperform.” It raised its price target on the stock to $34 from $26.

Dish seeks to diversify outside the pay-TV market

A slowdown in Dish’s subscriber losses could also see the company put a stop to its revenue decline. Dish’s revenue fell 8.5% year-over-year to less than $3.2 billion in the first quarter.

Dish’s diversifying its business outside the pay-TV market could also be a bright spot for the company. Dish is building a wireless network that could see it venture into the business of providing mobile phone services.


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