Nomura Securities Maintains a 'Reduce' on DIRECTV (DTV) Q4 Expectations Appear Reasonable, Focus on the Commentary
DTV Hot Sheet
Rating Summary:7 Buy, 5 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 20 | Down: 11 | New: 38
Nomura Securities maintains a 'Reduce' on DIRECTV (NASDAQ: DTV) price target of $32.00.
Analyst, Mike McCormack, said, "We think the most important aspect of the 4Q11 results process will not be the actual earnings themselves, but rather guidance and qualitative commentary. Without specific evidence that the domestic expense profile can be managed to maintain margins, we believe the risk reward of DTV shares is unfavorable. Programming expense is the core debate to long-term expectations, and we see~10% risk to US-segment EBITDA expectations. We continue to believe investors are paying a premium for an intertwined extraordinary buyback and LatAm EBITDA growth story; meanwhile, the trends of the core US business are likely to deteriorate, given significant cost pressures. We expect cost pressures to become more evident over the coming year, and recommend investors avoid exposure to DTV shares."
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 $44.76 yesterday, with a 52 week range of $39.82-$53.40.
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Analyst, Mike McCormack, said, "We think the most important aspect of the 4Q11 results process will not be the actual earnings themselves, but rather guidance and qualitative commentary. Without specific evidence that the domestic expense profile can be managed to maintain margins, we believe the risk reward of DTV shares is unfavorable. Programming expense is the core debate to long-term expectations, and we see~10% risk to US-segment EBITDA expectations. We continue to believe investors are paying a premium for an intertwined extraordinary buyback and LatAm EBITDA growth story; meanwhile, the trends of the core US business are likely to deteriorate, given significant cost pressures. We expect cost pressures to become more evident over the coming year, and recommend investors avoid exposure to DTV shares."
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 $44.76 yesterday, with a 52 week range of $39.82-$53.40.
Discover Wall Street's best ratings calls with the pros - Ratings Insider Elite. Free Trial!
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