Dish stock gets a downgrade at Guggenheim

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Guggenheim analyst Mike McCormack downgraded Dish Network Corp. shares to neutral from buy Friday amid skepticism about the company’s current strategic plan. “While we had hoped asset value would have been realized through either a sale of spectrum, or a partnership with a deep-pocketed tech firm, those scenarios are seemingly becoming much less likely,” McCormack wrote. “In our view, attacking a wireless industry with deeply entrenched competitors with a starting point of less than 10 million prepaid subscribers and a lengthy and costly build ahead isn’t a strategy we can endorse. While something may still materialize, we see the buildout process unfolding and do not see upside to shares as an operating company.” Dish purchased prepaid wireless brands that had to be divested in order for T-Mobile US Inc. and Sprint to gain regulatory approval for their recent merger. Dish shares are off 0.9% in Friday morning trading. They’ve risen 4% so far this year as the S&P 500 has gained 14%.
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