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DISH and DirecTV deal increasingly likely, says Bernstein

Bernstein believes a merger between DISH (DISH) and DirecTV (DTV) is inevitable and that consumer benefits of additional competition in broadband would far outweigh any anti-competitive risks of going to one video competitor from two. The firm believes potential merger synergies would be traditional cost reductions but also reduced churn between the companies and could in total exceed $3.5B. DISH is rated Market Perform with a $37 price target, up from $28, and DirecTV is rated Outperform with a $72 price target, up from $63.