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UPDATE: Brean Capital Reiterates On DirecTV On Good Market Position


In a report published Wednesday, Brean Capital analyst Todd Mitchell reiterated a Buy rating on DirecTV (NASDAQ: DTV), and raised the price target from $92.00 to $96.00.

In the report, Brean Capital noted, “We believe DTV is the premier asset in the MCVP space. Low and behold, satellite is not dead; in fact, there appears to be a large part of the U.S. population for which the utility value of a premium MCVP offering is high enough, they are not that price sensitive, and an even larger group in Latin America clamoring for a good MCVP offering. We believe the Comcast-TWC combo highlights value in DirecTV's large sub base and strong FCF characteristics. We are not surprised by recent reports that AT&T is considering a bid for DirecTV.

"Not only would DirecTV provide AT&T with much needed scale in a post Comcast-TWC world, DirecTV is firmly positioned in the marketplace as a premier offering and would provide AT&T with a video service profile that is competitive with Comcast's X1 while at the same time solving uVerse's network capacity and technology shortcomings, all the while allowing AT&T to maintain its dividend. With Latin America in better shape than we expected, and capital requirements falling in both the U.S. and Latin America, we are raising our target price on DTV to $96 from $92 and we reiterate our Buy rating.”

DirecTV closed on Tuesday at $81.74.

Latest Ratings for DTV

Feb 2015DowngradesBuyHold
Feb 2015DowngradesBuyNeutral
Dec 2014MaintainsNeutral

View More Analyst Ratings for DTV
View the Latest Analyst Ratings

Posted-In: Brean Capital Todd MitchellAnalyst Color Price Target Analyst Ratings


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