Dish Network jumps 10% as J.P. Morgan upgrades on 'improved catalyst path'
chinaface/iStock via Getty Images

Dish Network (NASDAQ:DISH) shares jumped on Friday after the satellite TV provider was upgraded by J.P. Morgan, with the investment firm citing several upcoming catalysts and the pending launch of its 5G network in Las Vegas.
Analyst Philip Cusick, who boosted the stock to overweight from underweight but lowered the price target to $40 from $42, noted that many of the concerns after the firm downgraded the stock last summer "have played out." These include higher spending on spectrum, having a hard time getting the 5G network up and running and the need for more money. 
The stock now offers investors a better risk-reward profile for investors, especially in light of the company's recently reported fourth-quarter earnings, the analyst explained.
"With shares substantially lower, from here we see a better value proposition as well as positive upcoming data points improving sentiment on Dish shares, which seem oversold vs the underlying value of spectrum, though we acknowledge potential execution challenges, including risk of further delay of the Las Vegas commercial launch, business model questions, and funding risks," Cusick wrote in a note to clients.
Dish Network shares rose nearly 10% to $32.34 in early trading on Friday.
In addition to the upcoming Las Vegas launch, which Chairman Charlie Ergen talked about recently, Cusick noted the company has several near-term catalysts, including the launch of the service in additional markets, the company's May 10 analyst day and additional launches by June to hit the milestone provided by the FCC.
"We are also encouraged by Dish's new agreement with TMobile (currently under review by the FCC and DOJ) that will help resolve ongoing issues and therefore reduce the need for a rapid conversion to AT&T, while resulting in improved economics and tighter network integration," Cusick explained, while adding this is also a positive for T-Mobile (NASDAQ:TMUS) shares.
On Thursday, Dish Network discussed its fourth-quarter results, which beat expectations, and Ergen said he thinks that a merger between Dish and DirecTV is "inevitable," or both companies would slowly disappear, leaving customers without service.