Nomura Securities Maintains a 'Reduce' on DIRECTV (DTV); Bullish on LatAm Growth, However...

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

Analyst, Mike McCormack, said, "Following the detailed segment presentations at DTV LatAm analyst day, we remain bullish on the outlook for LatAm EBITDA growth. However, we wait for evidence to support the company’s plan to hold capex flat beyond 2012. To adjust our view, we will require evidence that ARPU and churn can be sustained without a complementary ramp in retention and SAC spending. At the tail end of the analyst day, DIRECTV CEO Michael White commented that, while subscribers, revenues and the price increase are all tracking to plan, costs are running a bit higher than expected. Following 4Q11 results where incremental pre-SAC margins turned negative, the commentary suggests sustained pressure in the core 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 $49.49 yesterday.

---

Serious News for Serious Traders! Try StreetInsider.com Premium Free!

---

You May Also Be Interested In

• Nomura/Instinet Upgrades Genting Singapore (GENS:SP) (GIGNY) to Neutral
• JD.com (JD) Reiterated at Buy by Benchmark Amid Earnings Recovery
• Freedom Broker Upgrades Lifeway Foods (LWAY) to Buy