EchoStar's stock has for months been seen as a way to more cheaply get exposure to SpaceX

Some investors view EchoStar as a way to get exposure to SpaceX.

EchoStar's star might be on the rise and worth a fresh look after a volatile stretch, according to analysts.

The stock $(ECHO)$ surged late last year after the company agreed to sell billions of dollars' worth of spectrum rights to AT&T $(T)$ and, later, to SpaceX $(SPCX)$. As part of its dealings with SpaceX, EchoStar will receive SpaceX common shares, which established it as a proxy for the then-private company. Its SpaceX stake is worth $34.4 billion as of Thursday.

But EchoStar's stock has stumbled recently, dropping 20% since June 12, when SpaceX went public. However, much of that pressure is expected to be over and done with, Raymond James analysts said in a note on Friday. They upgraded EchoStar's stock to a strong buy with a $115 price target, implying a 25% hike from current trading levels.

The analysts, led by Brent Penter, added that short interest in EchoStar has increased since the company's deal with SpaceX was announced last September, possibly because some private investors used the stock as a hedge. Short interest should decline, Penter said, as more insider shares are released from lockups next month.

"To the degree this impacts [SpaceX] trading, [EchoStar's] price will be exposed in one direction or the other, but we believe the discount should decrease in any case," Penter said. He added that if even a "very small" number of SpaceX investors have used EchoStar as a hedge, there could be a "disproportionately positive impact" on shares.

EchoStar is the operator of Boost Mobile, satellite-TV unit Dish DBS and satellite-internet service Hughes. Dish on June 30 filed for Chapter 11 bankruptcy protection, and the Raymond James analysts said they would "not be surprised" if Hughes follows suit.

Last week, Hamid Akhaven, the CEO of Hughes and EchoStar Capital, resigned, with EchoStar Capital being folded into another division of the company. That, Penter said, "raises questions."

Deutsche Bank's Bryan Kraft said those announcements signal that EchoStar won't pursue a "broad investment mandate."

Kraft, who is bullish on both EchoStar and SpaceX shares, also said the company's focus should be on minimizing taxes on the SpaceX deal, and he raised the possibility of a merger.

"In this scenario, [SpaceX] would essentially be buying back its stock at a discount, but doing so using fully valued shares," Kraft said in a note to clients this week. "We believe this would allow a complete deferral of taxes on the now $46 [billion] in proceeds from SpaceX."

SpaceX's stock, like EchoStar's, has been on the decline. Shares traded as cheaply as $122.12 in Friday's session, a new intraday low and well below the IPO price of $135. SpaceX's market capitalization is down by more than $1 trillion from its record close on June 16, according to Dow Jones Market Data.

SpaceX postponed its latest Starship rocket test, originally planned for Thursday, citing engine troubles. The company said it would next attempt the mission as early as Monday.

An aborted launch isn't a worst-case scenario. Scrubbed launches are frequent in the space industry, where even strong winds and rain can trigger a delay. An explosion on the launch pad, as Blue Origin found out earlier this year, could be a much bigger problem.

"It is very, very common to see a launch delay. But it does follow on the heels of a pretty challenging ... Blue Origin situation," Greg Pendy at Clear Street Research told MarketWatch. "So I think people are on edge a little bit."

-William Gavin

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July 17, 2026 12:18 ET (16:18 GMT)

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