Wunderlich Securities Considers Potential Acquisition of DirecTV by AT&T

In a report published Tuesday, Wunderlich Securities analyst Matthew Harrigan reiterated a Buy rating and $97.00 price target on DirecTV DTV. In the report, Wunderlich Securities noted, “The Wall Street Journal and Bloomberg are reporting that Buy-rated DirecTV (DTV) and AT&T (T-NR) are engaged in late stage negotiations that should result in T acquiring DirecTV at a price ranging from $95 to $105. A deal could be inked within two weeks after an initial approach on May 1. DirecTV offers AT&T a premium national video solution along with premium current customer demographics that support 4K TV while allowing legacy AT&T capabilities to focus on broadband. Timing for a deal is also favorable as the government reviews Comcast's (CMCSA-$50.65, Buy) proposed acquisition of Time Warner Cable (TWC-$138.14, Hold). We feel that it is unlikely that the latter deal could pass regulatory muster without the DTV deal also being approved.” DirecTV closed on Monday at $87.16.