Satellite television broadcaster DirecTV was up 2 percent in stock market, hitting an all-time high. Hudson Square Research upgraded the stock rating from hold to buy after seeing a profitable business at the company.
The stock was trading in the vicinity of $53 a share but the report from Hudson Square incited investors to tot the price higher as much as $55.17, beating the previous record set on the 14 of this month.
Todd Rethemeier, an analyst at Hudson Square also raised the price target on the stock to $60. He previously assigned $49 to the stock but that has been longed breached by the company. Rethemeier said the basic reason for the stock’s higher value is the increasing demand in satellite television.
DirecTV provides television programming via satellite feed. Its major competitors are Dish Network and cable TV providers. However, standard of service and variety of content makes DirecTV a foremost choice to many.
According to Rethemeier, the internet video services were touted as a threat to satellite television providers but so far no advancements have been seen in that business. Even Apple failed to entice users to switch to internet-based TV content.
“We think that a competing over-the-top video platform is becoming less likely with each passing day. We have long maintained that pay TV operators were threatened by Internet streaming video. We have no doubt that there is customer demand for such a product. However, after waiting several years for a company to supply such a product, we have come to the conclusion that it is unlikely to be developed in the foreseeable future.
“We had thought that Apple would be the one company that could get the content agreements in place to offer such a service and revolutionize the industry, but we now think that even Apple won’t be able to get it done,” he wrote.
The news was taken warmly by investors. The stock price moved up 2 percent on Tuesday to the all-time high.
The company raised its expectations on subscribers for the year both in the US and Latin America to 150,000 and 650,000, respectively.