Citi analyst Jason Bazinet double downgraded Dish (DISH) to Sell as he believes Comcast (CMCSA) should acquire Verizon (VZ) and such a deal would put “significant pressure” on the former’s equity since Verizon is viewed as the most likely Dish suitor.

COMCAST SHOULD BUY VERIZON: In a research note to investors this morning, Citi’s Bazinet argued that Comcast should acquire Verizon as wireless would allow the former to extend Internet connectivity beyond the home, and given that both cable and wireless firms will need to push fiber deeper into neighborhoods. As a combined firm, this investment needs to be made only once, not twice, he contended. Further, the analyst pointed out that Verizon is apt to be the second biggest beneficiary of wireless consolidation, after Sprint (S) and T-Mobile (TMUS). A corporate tax rate reduction is also not yet reflected in Verizon’s multiple, suggesting potential upside for Comcast in a deal scenario if the tax code changes, Bazinet added. Moreover, he noted that the timing for this transaction may be right, citing Verizon’s stock price, press reports suggesting Verizon is open to merger talks with Disney (DIS), CBS (CBS) or Comcast, and the regulatory landscape that may be more amenable to business combinations. Additionally, 2017 is the first year where Comcast’s market capitalization exceeds Verizon’s, the analyst highlighted.

SELL DISH: Bazinet double downgraded Dish to Sell from Buy and lowered his price target on the shares to $52 from $94. Given his belief that Comcast should acquire Verizon, the analyst told investors that such a deal would put “significant pressure” on Dish’s equity since Verizon is viewed as the most likely Dish suitor.

WHAT’S NOTABLE: Yesterday, CNBC reported that a deal for Scripps Network (SNI) could be coming soon as the family behind the media group is expected to choose between offers from Viacom (VIA) and Discovery Communications (DISCA) by early next week. The family allegedly wants 50% in cash, the report said.