NEW YORK (TheStreet) -- Shares of DISH Network Corp. (DISH) are up 8.64% to $73.71 after bids in the FCC wireless spectrum auction rose by $7.5 billion yesterday with many large markets now above $2.50/MHz/POP, revealing possible positive implications for DISH, according to BTIG analyst Walter Piecyk.
The pay-television provider "sits on a trove of spectrum" that is more valuable than the AWS-3 spectrum currently being offered, Piecyk said.
"If you valued Dish's multichannel video programming distributor business at 6x EBITDA, the current stock price would imply a spectrum value of $1.00/MHz/POP before any tax implications," Piecyk noted.
"Our price target on Dish of $85/share is based on a spectrum valuation of $1.50/MHz/POP and at current auction values, we believe our DISH valuation has been validated, given its more valuable mix of downlink spectrum," Piecky said.
"It's interesting to note that the uplink spectrum that is also being auctioned has only reached $0.04/MHz/POP, underscoring the relative value of uplink spectrum to paired spectrum or downlink spectrum, which we believe has the highest value. At $2.00/MHz/POP, DISH would be valued at $104/share," Piecyk added.
Separately, TheStreet Ratings team rates DISH NETWORK CORP as a Buy with a ratings score of B-. TheStreet Ratings Team has this to say about their recommendation: