UPDATE: Morgan Stanley Reiterates On DirecTV On US Growth, Optionality

In a report published Wednesday, Morgan Stanley analyst Benjamin Swinburne reiterated an Overweight rating on DirecTV DTV, and raised the price target from $81.00 to $88.00. In the report, Morgan Stanley noted, “Our bullish view on DTV shares has typically been based our more constructive view of the sustainability of U.S. growth, and the confidence in the company's ability to leverage its competitive advantages in the U.S. into the under-penetrated LatAm market. In addition, and as highlighted in our Sep. 10 report ‘Dare to Dream' and more recently in our ‘Implications of a Possible AT&T/DTV Combination', we believe there is optionality in DTV shares. "While some of the optionality is now reflected in the price, in an environment of heightened industry consolidation, still discounted valuation relative to growth, and a strong start to ‘14, we remain OW.” DirecTV closed on Tuesday at $81.74.