Tirconnell
03-06-2008, 05:14 PM
© 2008 The Associated Press
NEW YORK — A Credit Suisse analyst upgraded Dish Network Corp. shares Thursday, pointing to its lower stock price _ but said he still prefers rival satellite TV provider DirecTV Group Inc.
Bryan Kraft raised his rating on Dish shares to "Neutral" from "Underperform," saying economic challenges to subscription growth appear to be included in the stock price. He thinks the company's performance is going to improve, but said DirecTV stock faces less risk and is at a better price.
Dish Network subscribers tend to earn lower income, he said, and the Englewood, Colo., company has been hurt by economic weakness and increasing home foreclosures. But he expects Dish to gain 589,000 subscribers in 2008, and said the stock may rise further in the next few quarters if the company does a better job of keeping subscribers.
Kraft lowered his price target to $35 from $42. The stock finished at $29.22 Wednesday, implying Kraft expects the stock will rise nearly 20 percent over the next 12 months.
DirecTV shares closed at $25.79 Wednesday. Kraft rates the stock "Outperform," with a price target of $32 per share. That implies growth of 24 percent.
NEW YORK — A Credit Suisse analyst upgraded Dish Network Corp. shares Thursday, pointing to its lower stock price _ but said he still prefers rival satellite TV provider DirecTV Group Inc.
Bryan Kraft raised his rating on Dish shares to "Neutral" from "Underperform," saying economic challenges to subscription growth appear to be included in the stock price. He thinks the company's performance is going to improve, but said DirecTV stock faces less risk and is at a better price.
Dish Network subscribers tend to earn lower income, he said, and the Englewood, Colo., company has been hurt by economic weakness and increasing home foreclosures. But he expects Dish to gain 589,000 subscribers in 2008, and said the stock may rise further in the next few quarters if the company does a better job of keeping subscribers.
Kraft lowered his price target to $35 from $42. The stock finished at $29.22 Wednesday, implying Kraft expects the stock will rise nearly 20 percent over the next 12 months.
DirecTV shares closed at $25.79 Wednesday. Kraft rates the stock "Outperform," with a price target of $32 per share. That implies growth of 24 percent.