As part of the merger agreement for T-Mobile and Sprint approved by the Department of Justice, Dish is set to buy prepaid mobile business assets and additional spectrum to become a wireless carrier. The merger still faces a lawsuit from states.
Raymond James analysts Ric Prentiss and Chase Donovan estimated that there is a 15% chance Dish is forced to continue business as usual, but that its existing wireless spectrum assets and television business still warrant a higher stock price.
The analysts said there is a stronger chance that the lawsuit from the states results in additional benefits for the company.
"We think it is an opportune time to buy DISH with the ... merger saga hopefully wrapping up in the next 6 months, and the ramping of 5G network deployments by U.S. carriers needing multiple spectrum bands," the analysts wrote in a client note on Monday morning.
Dish, which has seen its television subscriber base shrink as cord-cutting has gained popularity, has been buying spectrum in recent years for a potential move into the wireless space.
The analysts upgraded the company from market perform and set a price target of $44 per share for the stock, more than 30% above where it opened on Monday morning. Shares of Dish are up more than 28% this year but are well below highs of $44.66 per share reached in July.
Not every analyst shares the Raymond James' view. MoffettNathanson downgraded Dish last month following the merger agreement.