Wunderlich Securities Sees DirecTV Moving Toward AT&T Deal Approval and Close

In a report published Wednesday, Wunderlich Securities analyst Matthew Harrigan reiterated a Hold rating and $95.00 price target on

. In the report, Wunderlich Securities noted, "We expect few surprises when Hold-rated DirecTV (DTV) reports results on Thursday, Feb. 19, possibly its last earnings report prior to Washington's likely approval of the AT&T (T-NR) deal. With AT&T stock just below the $34.90 lower collar bound, shareholders would receive $94.52 in consideration based on the Feb. 13 close of $34.66, made up of 1.905 T shares and $28.50 in stock. (The 7.4% nominal discount seems excessive, although the appeal is exaggerated by DTV suspending its dividend while T yields 5.4%). We retain a favorable view of the deal's strategic attributes, both stateside through marketing/product integration with LTE Advanced and in Latin America. (We have adjusted our post-2014 estimates for further Latin currency declines, including the Brazilian reais at R$2.75/USD)." DirecTV closed on Tuesday at $87.47.