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Skip NavigationMarketsBusinessInvestingTechPolitics & PolicyVideoWatchlistInvesting ClubPROLivestreamMenuEchoStar gives investors exposure to SpaceX at a compelling discount, according to Morgan Stanley. The investment bank initiated research coverage of the global provider of networking services and satellite communications to overweight, with a $134 price target on the stock, implying nearly 44% upside from Friday’s close. “While complex, the market-implied discount applied to ECHO shares is too wide,” Morgan Stanley analyst Sean Diffley wrote in a report Monday. “We see an attractive entry point to get access to SPCX at a discount and view ECHO as one of the few publicly traded ways to play spectrum, which we view as a scarce & appreciating asset class.” In September 2025, EchoStar said in a statement that it had struck a roughly $17 billion deal to grant wireless spectrum licenses to SpaceX. Under the agreement, SpaceX can provide service from Starlink to Boost Mobile subscribers. EchoStar could be worth at least $161 a share because of its relationship with SpaceX , a New Street Research analyst claimed in June. Over the past year, shares of EchoStar have jumped 27%, with some investors attracted to the stock due to its connection with SpaceX. But EchoStar has largely traded in the red following SpaceX’s initial public offering on June 12 , falling nearly 17% in three months. ECHO 1Y mountain EchoStar is ahead 27% in the past year Since the SpaceX IPO, EchoStar has traded with a roughly 0.66 daily return correlation to SpaceX, according to Morgan Stanley. Today, the discount to EchoStar’s intrinsic value is “too wide to ignore,” the Morgan Stanley analyst said. “There are plenty of reasons to feel no sense of urgency to own ECHO equity … it’s complex (several assets in bankruptcy, has traded wide for a while), it is more of a credit than an equity story, buybacks don’t sound imminent and the scarcity value to play SPCX is no longer present,” Diffley wrote. “That said, as we dug in, we concluded that the discount is too wide to ignore and there are too many call options to sit on the sidelines, especially if one has a positive view on both SPCX … and spectrum.” The analyst said EchoStar could serve as “an idiosyncratic hedge on the U.S. wireless market,” in addition to offering call options around a potential merger between its Dish and Sling TV businesses and DirecTV. Morgan Stanley’s call matches the consensus on Wall Street, where six of seven analysts rate EchoStar either a buy or strong buy, with one hold, according to LSEG data.Read More