Nomura Securities Maintains a 'Neutral' on DIRECTV (DTV); 3Q Results Supported the Bullish Themes

Nomura Securities maintains a 'Neutral' on DIRECTV (NASDAQ: DTV) price target of $47.50.

Nomura analyst, Mike McCormack, said, "3Q results supported the bullish themes for DTV shares. However, with 4Q domestic subscriber trends expected to slow without the benefit of the Sunday Ticket promotion, and with the next leg of the buyback having been announced, we believe investors must begin to assess the dynamics of underlying cost trends in the US business. In this note, we dig into the underlying ARPU, retention and programming spending, as well as SAC trends. In our view, the net of the trends do not bolster confidence that the outlook for pre-SAC margins will improve in the near term.'

For more ratings news on DIRECTV click here and for the rating history of DIRECTV click here.

Shares of DIRECTV closed at $47.63 yesterday.

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