A welcomed increase in the value of shares of DISH Network Corp. comes just in time. This has taken place thanks to an upgrade by a Collins Stewart analyst. The reason given for the boost is that the stocks now include much of the cost of the expensive court defeat from the company’s ongoing battle with TiVo Inc.
This ongoing dispute has seen yet another battle lost by DISH when a federal appeals court helped TiVo to collect more than $300 million in damages, interest, and contempt sanctions from the company. DISH of course has said that it intends to appeal the court’s decision.
This dispute over patents concerning certain digital video recorder technologies has been going on since 2004 when TiVo first initiated the lawsuit. Regardless of this Thomas W. Egan, an analyst with Collins Stewart, said that the most current ruling should represent a major step in the right direction.
This in turn should help to ease the fears of investors. In a letter to investors Eagan stated that most of the negative impact from the judgment should be rolled into the stock. As such Eagan changed the status of the stocks from “Hold” to “Buy” and placed the target price at $30.
In Eagan’s letter to the company’s investors he stated that the current court ruling should be the last big obstacle facing DISH as the company has its turnaround well in hand. Perhaps as a nod to the decision to upgrade to “Buy” shares of DISH Network stock rose a full 3.5 percent, or 72 cents.
This rise brought the price of stocks up to $21.31 by time for afternoon trading. For the past 52 weeks shares of DISH Network stock have been trading anywhere between $8.79 and $22.18. With the upgraded status it is hoped that this price will now begin to increase once more.
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