Dish Network Corporation (DISH) recently announced that it will acquire Los Angeles-based prepaid mobile service provider Gen Mobile through its subsidiary Boost Mobile. The financial terms of the deal have not been disclosed so far. The company provides direct broadcast satellite subscription television services.
Following the news, shares of the company gained almost 1.7% to close at $44.32 in extended trade.
With this buyout, Gen Mobile’s brand, customer base, existing distribution network, technology and the wireless team will become a part of Boost Mobile. Further, with this acquisition, Boost Mobile’s participation in the Emergency Broadband Benefit (EBB) program will receive an impetus too.
The Head of Boost Mobile, Stephen Stokols, said, “Gen Mobile has an established brand, a proven team and an unwavering commitment to connect the underserved. The brand is a natural addition as we look to reach all segments of the mobile market.” (See Dish Network stock chart on TipRanks)
Recently, Deutsche Bank analyst Bryan Kraft reiterated a Buy rating on the stock. The analyst, however, raised the price target from $68 to $77, which implies upside potential of 73.7% from current levels.
According to the analyst, the company’s visible progress in network building and its wireless strategy are tailwinds for the company.
The Wall Street community is cautiously optimistic about the stock with a Moderate Buy consensus rating based on 4 Buys, 4 Holds and 1 Sell. The average Dish Network price target of $51.50 implies that the stock has upside potential of 16.2% from current levels.
Dish Network scores a 9 out of 10 from TipRanks’ Smart Score rating system, indicating that the stock has strong potential to outperform market expectations. Shares have gained about 24.9% over the past year.
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