EchoStar stock jumped 19% Monday to $47.49 per share on renewed speculation that AT&T would seek to buy the direct-broadcast satellite provider.
EchoStar, parent of Dish Network, was trading at $43.92, a gain of $4.09, or 10.3%, shortly after 11 a.m. Monday morning.
Over the weekend, Citigroup analyst Jason Bazinet said he was upgrading EchoStar to a “buy” from a “hold” based on its “attractive valuation” and “our ongoing conviction that there’s a 65% chance that AT&T acquires Dish over the next 12 months.”
EchoStar’s stock price had dropped last week after the satellite provider reported that in the third-quarter the pace of its subscriber growth has slowed down.
That led Barron’s, in its “The Trader”column, to do a story saying that AT&T wanted to get approval to buy EchoStar before a change in political control in Washington next year.
“We still see a 65% change of M&A over the next 12 months,” Bazinet wrote in his report Saturday. “Now that Dish shares have pulled back, we now see a favorable risk-reward profile.”