John Hill of SoundView Technology Group took a stab at forecasting DBS subscriber additions for the fourth quarter, and suggested DirecTV might gain on rival EchoStar and its DISH Network service during the three-month period in terms of enrolling new customers.
In a research note, Hill jumped his fourth quarter net subscriber additions for DirecTV, from 280,000 to 300,000. He maintained an "outperform" rating on the Hughes stock and a $20 target.
As for EchoStar, Hill reiterated his "Neutral" rating and $38 target, and lowered a previous fourth quarter net subscriber forecast for DISH Network by 10,000 to 290,000. Hill said he expects weak December results from EchoStar due to ongoing product issues.
"We expect DirecTV to take share in fourth quarter, although DISH's gains in new local markets at the expense of Pegasus (which sells DirecTV in rural areas) should mitigate this somewhat," Hill said. He also said EchoStar's problems are "temporary and likely to be corrected in first quarter."
