Kaufman Bros. Reiterates a 'Buy' on DIRECTV Group (DTV); Looking for Solid Quarterly and FY Results

November 2, 2009 7:18 AM EST

Kaufman Bros. reiterates a 'Buy' on DIRECTV Group (NYSE: DTV), raises price target from $29 to $34.

Kaufman analyst says, "DirecTV should deliver a solid quarter albeit decelerating from recent outperformance. DirecTV went into the quarter with strong momentum, but management began signaling that growth was decelerating mid-quarter and weaker-than-expected gross adds from its telco bundling partners point to the potential for disappointing 3Q09 results. We look for 175,000 net
additions in the quarter, up from 156,000 a year ago, on a 2% increase in gross adds and churn of 1.55%, down from 1.66% a year ago...We are ahead of consensus estimates in our outlook for DirecTV. We look for DirecTV to report 3Q09 total revenue of $5.6 billion (up 13% y/y), total EBITDA of $1.4 billion (up 12% y/y), and EPS of $0.43 (up from $0.33 a year ago). Our estimate is based on an 8% increase in U.S. revenue and a 16% increase in EBITDA, and a 7% increase in Latin American revenue and a 17% decline in Latin American EBITDA. Consensus for the quarter is for total revenue of $5.4 billion, total EBITDA of $1.39 billion and EPS of $0.39. We look for DirecTV to report 2009 total revenue of $21.9 billion (up 11% y/y), total EBITDA of $5.23 billion (up 4% y/y) and EPS of $1.37 (flat with $1.37
in 2008)."

To see more analyst ratings on DTV Click Here.

The DIRECTV Group, Inc. provides digital television entertainment in the United States and Latin America. It

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