UPDATE - UBS Downgraded DIRECTV (DTV) to Neutral; Sub Growth Likely to Slow
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Price: $63.58 +2.76%
Rating Summary:
9 Buy, 10 Hold, 1 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 8 | Down: 12 | New: 30
Rating Summary:
9 Buy, 10 Hold, 1 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 8 | Down: 12 | New: 30
Trade DTV Now!
UPDATE - UBS downgraded DIRECTV (NASDAQ: DTV) from Buy to Neutral. PT cut from $53 to $46.
UBS analyst said, "We believe the maturity of the U.S. pay TV market and increased competition from cable will require DTV to focus less on subscriber growth and more on retention and profitability. While this strategy may make sense given the state of the industry we believe it will result in slower growth, making multiple expansion hard to envision."
"We now look for just 88K U.S. net adds in 2012E (prev. UBSe 344K) vs. 681K in 2011E based on gross adds of 3.59M in 2012E vs. an estimated 4.32M this year...We expect rising programming costs from new deals with Fox, the NFL and others to offset savings from fewer gross adds, hurting OPBDA growth in 2012 and beyond. We now expect U.S. OPBDA growth of 5.8% in 2012E and just 0.5% in 2013E. We no longer expect the company to hit previous LT guidance for FCF of $5 per share in 2013."
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UBS analyst said, "We believe the maturity of the U.S. pay TV market and increased competition from cable will require DTV to focus less on subscriber growth and more on retention and profitability. While this strategy may make sense given the state of the industry we believe it will result in slower growth, making multiple expansion hard to envision."
"We now look for just 88K U.S. net adds in 2012E (prev. UBSe 344K) vs. 681K in 2011E based on gross adds of 3.59M in 2012E vs. an estimated 4.32M this year...We expect rising programming costs from new deals with Fox, the NFL and others to offset savings from fewer gross adds, hurting OPBDA growth in 2012 and beyond. We now expect U.S. OPBDA growth of 5.8% in 2012E and just 0.5% in 2013E. We no longer expect the company to hit previous LT guidance for FCF of $5 per share in 2013."
To see more ratings on DTV, Click Here
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