DirecTV's DTV cash-and-stock deal to be acquired by AT&T Inc.
T will yield higher-than expected synergies for the combined companies, an analyst said Wednesday.
Cannacord's Greg Miller initiated coverage on DirecTV with a Hold and $95 target.
Miller expects terms of the deal will result in DirecTV holders getting $28.50 in cash and between 1.905 and 1.724 AT&T shares, depending on AT&T's share at the closing.
AT&T has said it expects the combined companies will save operating costs of $1.6 billion three years after closing. Included in the so-called synergies are programming costs and cutting redundant broadcast infrastructure.
Miller called the estimate "highly conservative" and if the combined companies can better cross-sell their services, "the stock price could track prior large deals."
The Federal Communications Commission has set Sept. 16 as a deadline for comments on the proposed merger. Typically, a decision is made on such mergers 180 days following comment deadlines.
http://www.fcc.gov/transaction/att-directv-clockhis
DirecTV traded recently at $86.27 a share, down $0.35 cents.
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