Analyst Sees 'Overblown' Dish Impact - Multichannel

Analyst Sees 'Overblown' Dish Impact

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Merrill Lynch & Co. analyst Jessica Reif Cohen restated her "buy" rating on Cox Communications Inc., despite market pressure last week after EchoStar Communications Corp. announced a "free" giveaway of digital video recorders.

Cox stock dropped 3% ($1.05) Aug. 25 to $32.25 after EchoStar announced the promotion, a reaction Reif Cohen called "overblown."

In a report, she noted that Cox could counter the threat with its triple play bundle as well as video-on-demand and DVR offerings.

"Cox and its peers have competed with splashy EchoStar consumer initiatives in the past, such as free installation 3-4 years ago and free video 1-2 years ago, and are better positioned today to counteract limited time competitive offers," she wrote.

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