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Dish Upgraded to Buy at Pivotal on 5G Potential

Dish is 'rolling out a revolutionary cloud-native/software-driven 5G network with Amazon Web Services,' Pivotal said, upgrading Dish stock.
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Dish Network  (DISH) - Get Report shares rose on Wednesday after Pivotal Research analyst Jeffrey Wlodarczak raised his rating on the TV/wireless company to buy from hold and lifted his price target to $60 from $50.

“We view our new target price as arguably conservative, considering the significant upside potential in the Dish greenfield 5G wireless opportunity and to a much lesser extent from the likely inevitable merger with DirecTV,” he wrote in a commentary.

“Dish is in the process of rolling out what we view as a revolutionary cloud-native/software-driven 5G network with key partner Amazon Web Services.” 

Dish chose Amazon.com’s  (AMZN) - Get Report AWS in April as its preferred cloud-service and -infrastructure provider for its 5G network.

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That partnership “should allow [Dish]/developers/AWS to relatively quickly develop 5G applications/services that have the potential to revolutionize wireless, particularly in enterprise markets,” Wlodarczak said.

Dish recently traded at $41.03, up 2.2%. The stock has climbed 15% over the past six months.

“Our view is that the fundamental mistake naysayers make on Dish Wireless is to assume that their main strategy is to be the low cost/low price 4th U.S. wireless provider,” Wlodarczak said.

“Our view is that the most significant upside from Dish’s innovative 5G wireless network is leveraging its open hyperflexible quick time to market nature for enterprise markets vs. the telcos closed encumbered networks.”

In other Dish news, in March, it and DraftKings DKNG unveiled a partnership whereby Dish TV customers with an internet-connected Hopper receiver will be able to access the DraftKings app from their televisions.