EchoStar (SATS) Stock: SpaceX IPO Rumors Ignite Fresh Rally ⭐

TLDR

• EchoStar shares rose 6% to $93.54 on reports SpaceX may go public in 2026
• The satellite company holds $8.5 billion in SpaceX stock from a September spectrum sale
• Morgan Stanley upgraded EchoStar with a $110 target, up from $82
• Stock has climbed 308% year-to-date as SpaceX valuation doubled to $800 billion
• Analysts see value in EchoStar’s remaining wireless spectrum holdings that carriers want

EchoStar stock jumped 6% Tuesday, closing at $93.54 after Bloomberg reported SpaceX could pursue an IPO in 2026. The rally highlights how closely tied EchoStar has become to Elon Musk’s rocket company.

EchoStar Corporation, SATS

The connection stems from a September deal. EchoStar sold wireless spectrum licenses to SpaceX and received $8.5 billion in SpaceX stock. That stake has turned EchoStar into a publicly traded proxy for SpaceX’s private valuation.

When SpaceX’s value rises, EchoStar follows. Reports suggest SpaceX now seeks an $800 billion valuation, double the $400 billion price tag when the deal closed. That’s pushed EchoStar up 20% in December alone.

Year-to-date, shares have soared 308%. The stock trades just 5% below its 52-week high of $98.90.

Wall Street Raises Targets on Spectrum Value

Morgan Stanley upgraded EchoStar to Overweight Wednesday with a $110 price target. The previous target was $82.

The bank sees value beyond the SpaceX stake. EchoStar still owns paired AWS-3 spectrum that Verizon and T-Mobile want. Morgan Stanley expects carriers to compete aggressively for these holdings.

New Street Research also raised its target to $125 from $100. Analyst David Barden pointed to SpaceX’s rising valuation and changing rules that make spectrum more valuable.

That $25 bump adds roughly $9 billion in potential market value based on EchoStar’s 353 million fully diluted shares.

The average analyst price target has climbed $43 since September, moving from $50 to $93. The stock itself has gained $32 over that period.

SpaceX Stake Dominates Valuation Math

EchoStar’s market cap stands at $26.93 billion. That’s still below its 2014 peak during the AWS-3 spectrum auction.

Morgan Stanley’s bull case values EchoStar at $120 per share. The firm assumes AWS-3 spectrum sells for $3 per MHz pop and values the SpaceX equity at roughly $40 per share.

Breaking down the numbers reveals something interesting. EchoStar’s enterprise value excluding the SpaceX stake has actually declined from $40 billion to $36 billion since September.

The drop seems counterintuitive given the optimism around spectrum. But this situation is unique. Few companies hold billions in stock from the world’s most valuable private aerospace firm.

Recent Earnings Miss Doesn’t Slow Momentum

EchoStar missed Q3 earnings expectations. The company posted a loss of $44.37 per share versus forecasts of $1.21. Revenue came in at $3.61 billion against estimates of $3.73 billion.

Investors shrugged off the miss. The focus remains on SpaceX’s trajectory and spectrum value.

Elon Musk downplayed SpaceX fundraising talk on X, noting the company is cash-flow positive. But the IPO speculation continues to fuel EchoStar’s gains.

Morgan Stanley called spectrum “an appreciating asset” as carriers build out their networks. EchoStar sits at the intersection of two valuable assets: SpaceX equity and wireless spectrum that major carriers need.

The stock has become a way for public market investors to gain exposure to SpaceX’s growth without accessing private markets.

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