Analyst Note| Michael Hodel, CFA |
Dish’s wireless network buildout gathered momentum during the second quarter as it prepares to launch service in Las Vegas, planned within the next 60 days, and construction ramps up in 30 other markets across the country. The television business continues to pump out cash, funding wireless spending with enough left over to build cash on the balance sheet. Dish likely isn’t totally out of the woods concerning its financing needs, but we believe it has the financial leeway to experiment with various wireless business models. We don’t plan to change our $43 fair value estimate and would look for a cheaper entry point before considering the stock given the wide range of potential outcomes Dish faces.