Nomura Securities on U.S. Cable & Satellite: Subscriber Rebound Expected - Seasonality Provides Tailwind

Nomura Securities on U.S. Cable & Satellite: Subscriber Rebound Expected - Seasonality Provides Tailwind

Analyst, Mike McCormack, said, "Following a disappointing 2Q11 and year-ago subscriber losses, we believe the bar is low for 3Q subscriber trends. In video, we expect breakeven industry level metrics, with DIRECTV (NYSE: DTV) garnering the most share. In broadband, we expect notable softness in DSL trends, particularly at AT&T (NYSE: T), yet improved industry sequential additions. We maintain our preference for the Cable industry over Direct Broadcast Satellite (DBS) operators, as we favor the pricing dynamics of bundled providers and the strategic advantage of offering a full suite of telecommunications services. At an industry level, we will be focused on any hints in future pricing plans; last year, early data points started to materialize in the November-December timeframe."

Nomura maintains a 'Buy' on Comcast (Nasdaq: CMCSA) and Cablevision (NYSE: CVC). Price targets are $32 and $35, respectively.

Maintains a 'Buy' on Time Warner (NYSE: TWC), PT $85.

Nomura maintains a 'Neutral' on DISH Network (Nasdaq: DISH) (PT $32), DIRECTV (NYSE: DTV) (PT $47.50)

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