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A Dish Network Corp. field service specialist at a satellite television system at a residence in Downey, California.
Patrick T. Fallon | Bloomberg | Getty Images
Dish rose 3.9% on Monday after Raymond James upgraded the company to a strong buy, saying the stock is undervalued even if the proposed additions from the T-Mobile-Sprint merger do not materialize.
As part of the merger agreement for T-Mobile and Sprint approved by the Department of Justice, the company is ready to buy mobile business assets and additional spectrum to become a wireless carrier. The merger still faces lawsuit from states.
Raymond James analysts Ric Prentiss and Chase Donovan estimated that there is a 15% chance of a business being used.
The analysts said there is a stronger chance that the lawsuit of the states results in additional benefits for the company.
"We think it is an opportune time to buy with the … Saga Merge hopefully wrapping up in the next 6 months, and the ramping of 5G network deployments by multiple carrier spectrum carriers," the analysts wrote in a client note on Monday morning.
Dish, which has seen its television subscriber base shrink as cord-cutting has gained popularity, has been buying spectrum in recent years.
The analysts upgraded the company from a market share of $ 44 per share for the stock, more than 30 per cent on Monday morning. Shares of Dish are up more than 28% this year from $ 44.66 per share achieved in July.
Not every analyst shares the Raymond James' view. MoffettNathanson Downgraded Dish last month following the merger agreement.
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