Canaccord Genuity Maintains a 'Buy' on DIRECTV (DTV); Holding Leverage in Viacom (VIAB) Dispute

July 11, 2012 8:37 AM EDT
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Price: $52.32 -0.29%

Rating Summary:
    6 Buy, 23 Hold, 0 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 30 | Down: 30 | New: 23
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Canaccord Genuity maintains a 'Buy' on DIRECTV (NASDAQ: DTV) price target of $68.00.

Analyst, Thomas Eagan, said, "Viacom (Nasdaq: VIAB) has indicated that it will pull the signals of its cable networks from DTV unless an agreement is reached Tuesday at midnight. Although it is typical in most affiliate agreement disputes for the content company to have the negotiating leverage, we believe that DTV has the slight edge. And while it is true that DTV Q3/12 churn could increase somewhat should they lose the Viacom networks, we remain buyers of the stock, especially on a pullback."

"We estimate the subscriber equivalent to the lower OIBDA is the loss of 302k subscribers. We don’t expect DTV would lose that many subscribers should they lose the VIAB channels. That said, Dish Network (Nasdaq: DISH)(BUY) could be a beneficiary of the fight."

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 $48.69 yesterday.

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