Shares of EchoStar Corporation (NASDAQ:SATS) are trading higher Wednesday on speculation that a stake the satellite company holds in SpaceX may be worth a lot more in the near future.

• EchoStar shares are testing new highs. Why is SATS stock breaking out?

What To Know: SpaceX may be going public next year in a record-breaking IPO that would seek to raise more than $30 billion at a valuation of about $1.5 trillion, according to a Bloomberg report. EchoStar is one of several companies including Alphabet and Bank of America that offer exposure to SpaceX before the potential IPO.

EchoStar received $8.5 billion in SpaceX stock after selling spectrum licenses to the Elon Musk-led company in September. Back then, SpaceX was estimated to be valued around $400 billion, meaning that EchoStar’s current SpaceX holdings could be worth significantly more.

The report states that SpaceX could pursue an IPO as soon as mid-to-late 2026, with much of its growth coming from Starship and Starlink. Several airlines, including United Airlines and Qatar Airways, are Starlink customers, highlighting the B2B segment’s progress in recent years.

“SpaceX has been cash-flow positive for many years and does periodic stock buybacks twice a year to provide liquidity for employees and investors,” Musk posted on X recently.

Morgan Stanley’s Benjamin Swinburne upgraded EchoStar stock from Equal-Weight to Overweight on Wednesday and raised the price target from $82 to $110, which appears to be adding to the momentum.

SATS Price Action: EchoStar shares were up 6.18%, trading at $99.32 at the time of publication, according to Benzinga Pro.

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