NEW YORK (Reuters) - Dish Network Corp shares could jump 20 percent over the next year if the Federal Communications Commission’s wireless spectrum auction prompts investors to revalue the company’s wireless real estate, Barron’s said in a story published Sunday.
The third-largest pay-TV provider in the U.S., Dish Network owns undeveloped wireless spectrum that bullish analysts think could be worth $25 billion, Barron’s wrote.
That price may rise in November after the FCC holds its largest auction of spectrum since 2008, Barron’s said. The FCC has set a minimum bid of $10.1 billion.
“Just from a stock perspective, you don’t have to have a view on what Dish is ultimately going to do with the spectrum,” Jason Bazinet, an analyst at Citigroup, told the financial newspaper.
“The thesis is that the auction itself will be a positive catalyst for the stock. You just have to look forward to November.”
Bazinet has a price target of $79 for the stock.
Dish shares hit a 52-week high of $66.65 on July 2, and have gained 14.5 percent for the year-to-date.
Reporting by David Randall; Editing by Sophie Hares