EchoStar Corporation (SATS): A Bull Case Theory

We came across a bullish thesis on EchoStar Corporation on Century Egg Credit’s Substack by Century Egg. In this article, we will summarize the bulls’ thesis on SATS. EchoStar Corporation’s share was trading at $61.79 as of August 29^th. SATS’s forward P/E was 69.93 according to Yahoo Finance.

EchoStar (SATS) has taken a pivotal step by announcing the sale of its 600 MHz and 3.45 GHz spectrum blocks for $23 billion, unlocking a substantial portion of value previously trapped in its spectrum portfolio. The deal represents a meaningful premium over prior valuations, reflecting a sharp rise in spectrum pricing and underscoring strong interest from major players such as AT&T, T-Mobile, and SpaceX for remaining assets.

These two blocks alone account for roughly one-third of the portfolio’s total estimated value, and the market now anticipates further sales, potentially unlocking up to $65 billion in spectrum value. The proceeds could significantly strengthen the company’s balance sheet, reduce liquidity risk, and provide flexibility for both debt reduction and strategic initiatives.

While the transaction is transformative, regulatory oversight from the DOJ introduces uncertainty, particularly around its ideological “fourth network” mandate. EchoStar’s structure as a hybrid MNO under AT&T wholesale arrangements alleviates some competitive concerns, but timing and approval remain critical as the company approaches potential liquidity constraints in 2026. Additionally, the possibility of deploying spectrum proceeds toward a direct-to-device satellite venture introduces execution risk, as EchoStar lacks scale and expertise relative to competitors like SpaceX.

Despite these uncertainties, the strategic shift marks a dramatic reversal in Captain Ergen’s approach, signaling a disciplined monetization of spectrum assets. With strong buyer interest, a clear path toward balance sheet improvement, and a likely continued liquidation of the portfolio, SATS presents a compelling risk/reward profile.

Even after the stock’s rise from $30 to $52, the underlying spectrum value, potential regulatory approvals, and the disciplined execution of sales could drive substantial upside, with total equity value potentially reaching $140 per share. The company now appears poised to unlock years of latent value for shareholders while mitigating prior operational and financial overhangs.

Previously we covered a bullish thesis on Verizon Communications Inc. (VZ) by Charly AI in April 2025, which highlighted the company’s strategic growth in 5G, IoT partnerships, fiber expansion, strong cash flow, and attractive dividend yield. The company’s stock price has appreciated approximately by 4.88% since our coverage. The thesis still stands as Verizon continues to generate robust cash flow and maintain undervaluation. Century Egg shares a similar bullish perspective but emphasizes EchoStar’s disciplined monetization of its spectrum portfolio and potential upside from ongoing and future spectrum sales.

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Disclosure: None.