In this note we will be sharing our latest thought process since a lot has happened in that window:
Q2 for both ECHO and SPCX
First SPCX unlock
HSCC filing for Chapter 11 following non-payment of August maturity
We also put a floor on where we’d treat SPCX as a “snap buy” (if we ever get there) and how that feeds into our framework on ECHO.
Under $90, we see ECHO as heavily downside-protected independent of SPCX fluctuations with an R/R skew firmly back in asymmetric territory.
If you haven’t read the longer take on ECHO post SpaceX IPO, start here.
EchoStar Q2 Earnings Call – Captain Obvious
As expected, analysts pressed Ergen hard on capital allocation now that the AT&T transaction has closed.