DIRECTV (DTV) EBITDA Could Fall 4% in Bear Case

Shares of DIRECTV (NASDAQ: DTV) came under pressure early on Thursday after a recent 8-K filing showed trouble in Latin America. According to the filing, Sky Brasil subs were lower than previously thought as a result of "improper activities" by some employees.

Citi analyst Jason Bazinet noted that a 200 thousand reduction in sub count reduces equity value by $280 million. As a result of the new information, he predicts a 4% reduction in Ebitda in a 'bear case' and a similar reduction in equity value. He also warned investors might assume the worst until more clarity is seen in Latin America.

Citi has a Buy rating on DIRECTV with a price target of $67.00.

For an analyst ratings summary and ratings history on DIRECTV (NASDAQ: DTV) click here. For more ratings news on DIRECTV click here.

Shares of DIRECTV closed at $61.08 yesterday.

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