) to buy from hold.
Analyst Peter Ausnit says channel checks show that strong demand is now being filled by stand-alone units and DirecTV combination boxes; combo boxes were scarce but are now on the shelves at Circuit City and Good Guys, and he thinks Best Buy will have them in January.
Also, Ausnit thinks fourth quarter new subscribers are tracking to plan -- an accomplishment since DirecTV combo boxes are likely tracking below target with strong stand-alone receiver sales making up the difference.
He notes if trends persist, tthen adjusted EBITDA and margins could surprise positively. Ausnit adds that at $4.76, shares are down 40% from the $8.10 Nov. 29 intraday high. He raised his $6 target to $8.