Extravagance is out this year, exclaims Jeff Macke. Even people who have money won’t spend it. In keeping with that theme my play are Disney (DIS), Corning (GLW), IMAX (IMAX) and DirecTV (DTV).

Goldman said it is downgrading DirecTV (DTV) to Neutral from Buy based on valuation following recent advance. Believe positive operational and strategic catalysts are priced into the stock, and note future difficulty gaining video share. Price target at $30.

The El Segundo, Calif.- based company announced first quarter results along with its plan to increase its buyback program to $3 billion. During the quarter the company spent $160 million repurchasing shares. DirecTV did not offer an expiration date for the buyback.

The digital TV provider reported impressive first quarter earnings. During the quarter, revenue jumped 17% to $4.6 billion; U.S. revenue increased 14% while Latin America revenue soared 47% to $542 million. Free cash flow nearly doubled from $262 million to $505 million. Net income was $371 million, a 10.4% increase from $336 million reported in the same period last year.

Operating performance was exceptionally strong in Latin America where the company added 200,000 subscribers during the quarter. The large subscriber addition and favorable exchange rates forced operating profit up 73% to $138 million. DirecTV now owns 74% of Sky Brazil, 41% of Sky Mexico, and 100% of PanAmericana, which covers the rest of the region.

President and CEO Chase Carey added, “We expect 2008 to be a year in which we take DIRECTV to a whole new level in terms of profitability and cash flow growth. We took an important step toward this goal in the first quarter as DIRECTV U.S. generated $603 million in cash flow before interest and taxes, representing a 76% increase over the prior year.”

We like to see that Deutsche Bank reiterated their buy rating on the stock and increased their price target $2 to $36. The analysts from Deutsche Bank believe DTV offers a significant advantage in HD, strong growth especially in Latin America, peaking costs, positive affects form the buyback, and a stock trading inexpensively.

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DirecTV (DTV) was upgraded from Neutral to Outperform, Cowen said. Expect the company to maintain its subscriber momentum and continue to grow free cash flow.

Has been solid long term buy.

DirecTV (DTV) was upgraded to Buy, Merrill Lynch said. Estimates also raised, as the company is signing up more subscribers. Valuation also looks cheap, based on the prospects of the active buyback program. $30 price target.

Stable in Slow economy

duh

Nothing sinks a comapny faster than deteriorating customer service.

cable providers taking subs with 'triple play', signal compromised by weather.