Of all the media stocks out there why does Pali Research consider DirecTV a favorite?
We asked Fast Money friend Rich Greenfield, the very same Pali analyst who put a buy rating on the stock and gave it a $32 price target.
Greenfield always offers a lot of data points to back up his case, but rather than sift through all of it -- following you'll find the 3 main points to his argument.
- DirecTV was able to add 761,000 subs while cable lost over a half million during the previous 2 quarters. That’s strong performance. And he says they accomplished such impressive results because, "DirecTV only does one thing, video and they simply do it better than rivals by putting the consumer first.”
- Consequently, he anticipates improved cash flow – which he thinks could be used to buy back stock.
- Finally he thinks it’s increasingly hard to imagine DirecTV remaining a stand-alone company. And Greenfield speculates the likely buyers could be AT&T (T) or Verizon (VZ).
As a result he expects this stock to climb about $10 – or approximately 50%.
To hear our entire interview with Rich Greenfield please watch the video.
