--- title: "SpaceX (SPCX) Exposure Becomes More Affordable With Morgan Stanley's New Stock Pick" type: "News" locale: "en" url: "https://longbridge.com/en/news/299075944.md" description: "Morgan Stanley analysts, led by Sean Diffley, initiated coverage of EchoStar (SATS) with a Buy rating and a $134 price target, citing a 45% upside. They view SATS as an attractive entry point for SpaceX exposure, expecting it to hold ~2% of SpaceX shares worth nearly $40 billion after a spectrum deal closes. The firm highlights scarce spectrum assets, improved credit profiles from AT&T deals, and potential DISH-DirecTV merger benefits, despite noting bankruptcy risks in some assets." datetime: "2026-09-15T16:04:53.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/299075944.md) - [en](https://longbridge.com/en/news/299075944.md) - [zh-HK](https://longbridge.com/zh-HK/news/299075944.md) generator: "portal-rs" --- # SpaceX (SPCX) Exposure Becomes More Affordable With Morgan Stanley's New Stock Pick Satellite communications services provider EchoStar (SATS) is "an attractive entry point to get access to SpaceX (SPCX) at a discount." This is according to a team of analysts at Morgan Stanley (MS), led by Sean Diffley. Diffley kicked off coverage of ECHO with a Buy rating. He set a price target of $134, implying about 45% upside. Diffley and his team backed their ratings with the following points, among others: - **Discount 'Too Wide':** EchoStar shares are currently down about 15% year-to-date to around $92 per share. Diffley believes SATS stock is trading at a discount that is "too wide to ignore." - **Big Value from SpaceX Stake:** In September last year, EchoStar agreed to sell its spectrum license to SpaceX in a roughly $17 billion deal. The arrangement includes up to $8.5 billion in cash and up to $8.5 billion in SpaceX shares. Diffley expects EchoStar to own about 2% or 262 million SpaceX shares when the deal closes in November next year. This is expected to fetch EchoStar almost $40 billion, compared to its current market cap of $27 billion. - **Scarce Spectrum Asset:** According to the Morgan Stanley team, EchoStar is one of the few publicly traded companies investors can turn to to get exposure to scarce spectrum. The team considers spectrum a scarce and appreciating asset class. - **Potential DISH+DirectTV Merger**: In 2024, EchoStar's efforts to merge its multi-channel TV service, DISH Networks, with rival DirecTV fell apart. However, Morgan Stanley still sees the merger option as positive for EchoStar. - **Improving Credit Profile:** According to Diffley, EchoStar's credit profile has improved significantly due to more spectrum sales. For example, the $23 billion deal with telco giant AT&T (T) helped EchoStar repay a key part of its debt. What's more, DISH DBS is being restructured to reduce debt. DBS runs DISH Network's satellite pay-TV business. The analysts gave the rating despite flagging some of EchoStar's drawbacks. This includes several of EchoStar's assets being in bankruptcy. What's more, EchoStar seems unlikely to issue a share buyback soon. This is despite the fact that the firm raised its authorized buybacks to $5 billion earlier in July. ## **Is EchoStar a Good Stock to Buy?** Across Wall Street, analysts have a Strong Buy consensus rating on EchoStar's shares. This is based on six Buys issued over the past three months. In addition, the average ECHO price target of $127.33 implies about 37% upside (see **ECHO stock forecast** here). ### Related Stocks - [SATS.US](https://longbridge.com/en/quote/SATS.US.md) - [T.US](https://longbridge.com/en/quote/T.US.md) - [DXYZ.US](https://longbridge.com/en/quote/DXYZ.US.md) - [PL.US](https://longbridge.com/en/quote/PL.US.md) - [ASTS.US](https://longbridge.com/en/quote/ASTS.US.md) - [RKLB.US](https://longbridge.com/en/quote/RKLB.US.md) - [VCX.US](https://longbridge.com/en/quote/VCX.US.md) - [PLU.US](https://longbridge.com/en/quote/PLU.US.md) - [ASTX.US](https://longbridge.com/en/quote/ASTX.US.md) - [ASUP.US](https://longbridge.com/en/quote/ASUP.US.md) - [ASTN.US](https://longbridge.com/en/quote/ASTN.US.md) - [RKLX.US](https://longbridge.com/en/quote/RKLX.US.md) - [RKLZ.US](https://longbridge.com/en/quote/RKLZ.US.md) - [MS.US](https://longbridge.com/en/quote/MS.US.md) - [MS-O.US](https://longbridge.com/en/quote/MS-O.US.md) - [MS-Q.US](https://longbridge.com/en/quote/MS-Q.US.md) - [MS-E.US](https://longbridge.com/en/quote/MS-E.US.md) - [MS-I.US](https://longbridge.com/en/quote/MS-I.US.md) - [MS-L.US](https://longbridge.com/en/quote/MS-L.US.md) - [MS-P.US](https://longbridge.com/en/quote/MS-P.US.md) - [MS-A.US](https://longbridge.com/en/quote/MS-A.US.md) - [MS-F.US](https://longbridge.com/en/quote/MS-F.US.md) - [MS-K.US](https://longbridge.com/en/quote/MS-K.US.md) - [T-A.US](https://longbridge.com/en/quote/T-A.US.md) - [TBB.US](https://longbridge.com/en/quote/TBB.US.md) - [T-C.US](https://longbridge.com/en/quote/T-C.US.md) ## Related News & Research - [The Simple Reason AT&T Isn't Too Concerned About SpaceX's Starlink Business](https://longbridge.com/en/news/299040780.md) - [BREAKINGVIEWS-SpaceX gives wireless industry rude wake-up call](https://longbridge.com/en/news/299179109.md) - [AST SpaceMobile Chief Operating Officer Sold Shares Worth Over $706K](https://longbridge.com/en/news/299369613.md) - [AST SpaceMobile CTO Huiwen Yao disposes of 40,000 common shares for $2.36 million](https://longbridge.com/en/news/299368928.md) - [Planet Labs Co-Founder, Chief Strategy Officer Robert H. 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