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Brean Murray Carret Cuts Price Target on DIRECTV (DTV), Sees Well Below Expectation Results

February 13, 2012 10:03 AM EST
DTV Hot Sheet
Rating Summary:
    7 Buy, 5 Hold, 1 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 19 | Down: 16 | New: 82
Brean Murray Carret & Co. is reaffirming its Buy rating on shares of DIRECTV (NASDAQ: DTV) and is reducing its price target from $59 to $57 ahead of the release of its Q4 results before the opening bell on February 16.

For the quarter, the firm forecasts profitability will be hampered by higher programing costs. Total revenues are expected to grow 15 percent as they estimate 215,000 U.S. net adds. Earnings are predicted to total $0.79 per share, well below the Street's consensus of $0.92.

Brean Murray Carret cut its FY12 estimates. For the year, the firm now forecasts $30.1 billion in revenues, EPS of $4.15, 250,000 U.S. net adds, 13 percent drop in gross adds and churn of 1.5 percent. An analyst at the firm highlights the market looks to have already priced in the weaker 2012 outlook into the stocks price.

For an analyst ratings summary and ratings history on DIRECTV click here. For more ratings news on DIRECTV click here.

Shares of DIRECTV closed at $45.51 yesterday, with a 52 week range of $39.82-$53.40.


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