DirecTV a Buy on Latin American, NFL Strength (DTV)

Wunderlich Securities continues to recommend a Buy rating for DirecTV DTV at a $46 price target in a research report released Friday. Part of their reasoning stems from DirecTV’s inroads into Latin America, now having over one million customers in Argentina and gaining ground in other countries such as Brazil and Chile. In addition, Wunderlich found that DirecTV’s NFL Sunday Ticket online and mobile system has potential to be a revenue “Trojan Horse” for markets not necessarily friendly to satellite dish installation, such as in New York City. In general, the report indicates that DirecTV has effectively branded itself as an affordable luxury. Future bumps, such as a possible NFL lockout in March – which DirecTV would still have to pay on their NFL contracts for the duration – “could enhance share repurchase efficiencies” said Wunderlich in the report.