EchoStar Corporation (ECHO.O): Updating our Echostar Model for 2Q26 Results

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EchoStar Corporation (ECHO.O): Updating our Echostar Model for 2Q26 Results

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03 Aug 2026 23:27:39 ET │ 21 pages

EchoStar Corporation (ECHO.O)

Updating our Echostar Model for 2Q26 Results

CITI'S TAKE

EchoStar's earnings call reinforced management's vision for a post-

transaction EchoStar centered on Broadband & Satellite Services, Boost

Mobile, EchoStar Capital, and its pending SpaceX investment. While Buy / High Risk

EchoStar has increased the unused buyback program from $2B to $5B for Price (03 Aug 26 16:00) US$85.63

2026, we remain uncertain as to whether or not the company will begin

returning cash to shareholders this year after management expressed Target price US$117.00↓

caution regarding elevated market valuations combined with current from US$126.00

limitations relating to its debt covenants. We still believe ECHO has Expected share price return 36.6%potentially positive catalysts that can support upside from the current levels

by monetizing its remaining spectrum inventory, resolving uncertainties Expected dividend yield 0.0%

over remaining lease/tax liabilities, reaching a conclusion regarding its Expected total return 36.6%

parallel financial restructurings of DBS & HSS, and returning capital to Market Cap US$24,875Mshareholders. We maintain our Buy/High Risk on ECHO with a reduced

target of $117 to reflect ongoing headwinds on its operating businesses.

Model Update — We updated our model to incorporate 2Q26 results. To reflect the

Price Performancedisclosed Chapter 11 financial restructurings of its subsidiaries – DISH DBS and

Hughes Satellite Services (HSS) – we have deconsolidated the DISH DBS, other, and (RIC: ECHO.O, BB: ECHO US)

its Hughes operating segments (recognizing some of the assets could remain within

EchoStar).