Brean Capital Sees Attractive Investment Opportunity On Shares Of DirecTV

In a report published Tuesday, Brean Capital analyst Todd Mitchell reiterated a Buy rating and $95.00 price target on DirecTV DTV.

In the report, Brean Capital noted, “We think shares of DTV offer an attractive opportunity. Trading at a 10% discount to AT&T's (T, $35.65, Not Rated) offer, we think DirecTV will have a positive impact on AT&T's competitive positioning and financial profile, and we believe shares of DTV offer an attractive way to play that upside.

"We believe the deal will be approved by regulators on a timely basis and with few concessions, and we think the risk that DirecTV does not complete a NFL Sunday Ticket deal has been overstated. We are lowering our 2Q14 OPBDA and EPS estimates going into the print on a reduction in our outlook for DLA's margin contribution. As a result, we are now in-line with consensus. This does not impact our target price of $95 which is based on AT&T cash and stock offer for the company. As a result, we reiterate our Buy rating on shares of DTV.”

DirecTV closed on Monday at $86.16.