After a good rating from a UBS analyst, the price of Dish Network Corp. (DISH) stocks climbed on Friday. The analyst has rated in favor of the satellite TV provider and has said that the improving economy and the changes in the competitive scenario among the satellite TV providers will move the business of DISH Network forward.

Analyst John C. Hodulik has increased his rating to “Buy” from “Neutral”. He has also increased his target price from $22 to $26.

In a note to investors he wrote that in most of 2008, DISH Network has suffered from subscriber loss while DirecTV, its arch-rival in the satellite TV industry ran an aggressive promotion. The company also dealt with fraud, piracy and customer care issues that lead to a high rate of subscriber loss.

However, in last October DirecTV has tightened its credit requirements. Hodulik anticipated that this can drive the no-eligible subscribers to DISH Network. He also added that in the second half of 2009, DISH Network has answered DirecTV’s promotions with their aggressive campaign and gained a considerable number of subscribers. This has lead to a significant growth in subscribers of DISH Network services in the fourth quarter.

The analyst hopes that “Basic blocking and tackling – promptly answering customer calls, new smart cards to secure the signal and reduce fraud, the ability to accept debit cards” – should help keep a lid on subscriber turnover going forward.

Additionally, the improving economy is helping DISH Network’s prospects, Hodulik said. DISH Network is the leader among the low cost satellite TV providers in the market and its value message has surely attracted the subscribers with a low entertainment budget.

Shares of Englewood, Colorado-based DISH Network rose 76 cents or 3.6 percent and closed at $21.79 in Friday afternoon trading. In the past one year the share has traded between $12.58 and $22.18.