DTV Announces Better Than Expected Share Repurchase
Analyst S Wang of Credit Suisse maintains his "neutral" rating on The Directv Group Inc (NYSE: DTV), while raising his estimates for the company. The target price for DTV has been raised from $27 to $33.
According to Credit Suisse, Directv has reported inline Q4 results from its US operations and better than expected results from its Latin American operations. DTV has announced a $3.5 billion buyback authorization, which is above consensus expectations, the analyst says.
“Overall, DTV's results & outlook support our view that after a period of operational outperformance vs peers, the landscape is getting more competitive… As a result, for 2010, we expect subscriber growth to slow, although we think DTV is striking a good balance between sub growth & cash flow growth, and we anticipate ARPU growth to modestly re-accelerate,” the analyst adds. Credit Suisse has raised its EPS estimate for FY10 from $2.05 to $2.17.
