EchoStar Shares Surge After 2Q Results, Upgrade

NEW YORK (AP) — Shares of EchoStar Corp. surged Tuesday following the company's second-quarter earnings report, after a Citi Investment Research analyst upgraded the company and sharply raised his target price.

Shares of the Englewood, Colo.-based company rose $2.77, or 17 percent, to $18.74 in early afternoon trading. In the past 52 weeks, the stock has traded between $12.78 and $33.95.

EchoStar, which sells set-top boxes and provides satellite services mainly to sister company Dish Network Corp., said Monday its second-quarter profit more than doubled on an investment gain that more than offset a decline in revenue.

On Tuesday, Citi analyst Jason B. Bazinet upgraded the company to "Buy" from "Sell" and boosted his target price to $21 from $13.50. He also added the stock to Citi's "Top Picks Live."

In a note to investors, Bazinet said the company's cash and marketable securities alone are now worth $15 per share.

"Since the firm has no debt, we believe this limits downside risk," the analyst wrote.