Dish stock downgraded to sell at MoffettNathanson as T-Mobile/Sprint deal approval gets closer

MoffettNathanson analyst Craig Moffett downgraded Dish Network Corp. shares to sell from neutral on Thursday, writing that T-Mobile US Inc.'s deal for Sprint Corp. , which is reportedly getting closer to approval, "isn't necessarily bad news for Dish Network... but it's very likely very bad news for Dish Network's investors." Dish is expected to purchase spectrum and wireless assets from the merging companies and gain the ability to use their new network to offer wireless service for several years while Dish builds up its own infrastructure. "We've warned for at least five years that if and when Dish's spectrum holdings ever come to be viewed as an operating asset rather than an asset held for sale, well... look out below," Moffett wrote. "To bound the challenge, consider that simply to justify its current stock price of just over $40, one would have to assume that Dish's new wireless venture is already worth something between $20B and $28B!" Shares are off 0.9% in premarket trading Thursday. They've gained 66% so far this year, as the S&P 500 has climbed 20%.

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