EchoStar Corporation (NASDAQ:SATS) is a provider of broadband satellite communications servicing a variety of consumer and commercial customers, including individual consumers and small to large enterprises.
The core of the business is the broadband side of the business, which utilizes a constellation of satellites to provide customers a wide range of connectivity solutions. This is a hardware-intensive business, and the company was hit by COVID-related issues. As an example, the company has had some operational challenges, and the company has had issues with a few enterprise customers that have declared bankruptcy due to the pandemic. Due to these issues, in order for me to be more bullish on the prospects of EchoStar, I will need to get a better line of sight to a post-COVID economic recovery.
The recent vaccine news is definitely positive. However, the level of uptake by the general population as well as the trajectory of the distribution ramp of the vaccine is still uncertain. Without clearer visibility, it is difficult to be bullish on the stock and is why I am currently neutral on this name.
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