EchoStar is worth at least $161 a share because of SpaceX stake, says analyst

The SpaceX IPO has made EchoStar a more valuable company, according to New Street Research, which raised its price target on the satellite company to reflect its stake in the Elon Musk -run company. Analyst David Barden said Monday EchoStar is worth $159 per share based purely on the value of SpaceX's stock at the end of its first day of trading. However, New Street has a price target at $165 for SpaceX shares, which puts the potential value of EchoStar at $161 per share, or 37% above where its shares closed Monday. "We believe owning SpaceX stock via EchoStar at these levels is an attractive proposition," Barden wrote in a note to clients. The current EchoStar stock price, he said, implies that the company's SpaceX stake was valued at $86 per share — 46% below SpaceX's Friday closing stock price. EchoStar is expected to receive roughly 262 million SpaceX shares. The rocket maker's stock ended its first day of trading at about $161, which makes EchoStar's stake is worth $42.1 billion. At an established price target of $165 for SpaceX, the stake is worth $43.2 billion, according New Street's Space team. SpaceX shares have continued to rally since the company's debut. In trading on Tuesday , the stock was recently up another 13%, catapulting it past New Street's price target. EchoStar shares were up about 2% in Tuesday's session. …