Analyst: owning SpaceX stock via this telecom name is an 'attractive proposition'
AI Sentiment: 78/100 Bullish
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Buy SATS. The market is valuing EchoStar’s SpaceX stake far below the implied value of SpaceX shares (SATS discounts SPCX exposure). With ~262M SPCX shares, the core argument is simple: you’re buying a telecom cash-flow business plus a large, underappreciated SpaceX position at a discount. Near-term catalyst: a clean break above ~$124 (20-day MA) should pull in momentum buyers, while options positioning (low put-to-call) supports upside into mid-October.
Key Risk: SpaceX’s value falls or EchoStar’s stake is impaired (e.g., dilution, forced revaluation, or a major regulatory/ownership constraint), wiping out the “discount to NAV” thesis.
Buy SATS call spreads (mid-October expiries). The news points to bullish skew (put-to-call ~0.24) and a likely technical breakout near the 20-day MA. Second-order play: if the stock moves up, implied volatility and call demand can rise together, improving the odds that call spreads outperform straight shares even if the move is only moderate.
Key Risk: A sharp selloff that breaks the $124 level and flips options sentiment (put demand spikes), causing call spreads to lose quickly even if the long-term stake thesis remains intact.
- David Barden says EchoStar's stake in SpaceX is being underappreciated.
- Here's how many SPCX shares SATS owns at the time of writing.
- The New Street analyst raised his price target on EchoStar stock to $165.
EchoStar SATS has a sizeable stake in the newly public SpaceX (SPCX) – one that’s being largely underappreciated by market participants, says New Street’s senior analyst David Barden.
In a recent note to clients, Barden raised his price target on the telecommunications firm to $165, indicating potential upside of an exciting 40% on its previous close.
The bullish call arrives at a time when EchoStar stock is struggling to reclaim its year-to-date high, currently down some 15% versus its peak in late May.
Why is Barden bullish on EchoStar stock?
David Barden is positive on SATS for one simple reason: its stake in SpaceX alone makes it worth more than the market is giving it credit for in 2026.
Following the recent sale of wireless spectrum to AT&T and SpaceX, EchoStar owns roughly 262 million shares of billionaire Elon Musk’s artificial intelligence (AI) and space infrastructure giant.
Valuing SPCX shares at $161 each (the price at which they closed their debut session on Nasdaq), that stake alone is now worth over $42 billion (approx. £31.8 billion).
But SATS shares at nearly $121 at writing are enormously “discounting” the SpaceX exposure – pricing the behemoth at a much lower $86 only, the New Street analyst told clients.
“We believe owning SpaceX stock via EchoStar at these levels is an attractive proposition.”
SATS’ fundamentals remain strong in 2026
Beyond its SPCX holdings, EchoStar shares remain attractive, as the company maintains a core telecommunications infrastructure that generates steady cash flow.
It exited Q1 with over 6 million pay-TV subscribers, comprising 4.8 million on Dish TV and 1.79 million on Sling TV, as well as its Boost Mobile brand.
That said, Barden actually adjusted estimates for SATS’ legacy assets amid ongoing FCC spectrum auctions.
On Tuesday, he trimmed the AWS-3 spectrum valuation to $3 per MHz-POP from $3.62, reducing the expected value of EchoStar’s standalone business from $10 billion (approx. £7.6 billion) to about $8.3 billion (approx. £6.3 billion).
Where options data suggests SATS shares are headed
From an investment perspective, what’s also worth mentioning is that SATS stock looks headed to now challenge its 20-day moving average (MA), with a clear break above $124 expected to boost bullish momentum in the near-term.
Moreover, much like New Street Research, the derivatives market is keeping bullish on EchoStar for the remainder of 2026, especially since it isn’t particularly expensive to own at about 2.2x sales.
According to Barchart, the put-to-call ratio on options contracts expiring mid-October sits at 0.24 currently, indicating a very strong bullish skew.
Crucially, while not as bullish as David Barden, other Wall Street analysts remain constructive on EchoStar for the next 12 months as well.
The consensus rating on SATS sits at “Moderate Buy” currently, with the mean price target of $143 signaling potential upside of nearly 20% from here.
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