Nomura Securities Maintains a 'Reduce' on DIRECTV (DTV); Follow-up To Our Ratings Change

Nomura Securities maintains a 'Reduce' on DIRECTV (NASDAQ: DTV) price target of $32.00.

Analyst, Mike McCormack, said, "We downgraded DTV shares on December 15, 2011 to Reduce from Neutral. Our Reduce rating is based on a belief that investors are paying a large multiple premium for an intertwined extraordinary buyback and LatAm EBITDA growth story; meanwhile, the trends of the US business are likely to deteriorate. The primary investor pushback has been that a premium multiple is warranted because of the LatAm growth and buyback opportunities...Latam capex dynamic changing as fast as it is growing...DIRECTV much more leveraged than investors may realize...Only minimal pushback on the US business."

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 $41.68 yesterday.

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