Time Warner Cable Upgraded to “Buy” at UBS AG (TWC)
Time Warner Cable (NYSE:TWC) was upgraded by equities research analysts at UBS AG from a “hold” rating to a “buy” rating in a research note issued to investors on Monday, Stock Ratings Network.com reports. The firm currently has a $175.00 price target on the stock, up from their previous price target of $165.00. UBS AG’s price objective would indicate a potential upside of 24.64% from the stock’s previous close.
The analysts wrote, “We are trimming our price target for CMCSA to $60 from $63, but reiterating our Buy rating, and we are upgrading TWC to Buy from Hold, and setting a price target of $165. Shares of both have underperformed since Comcast announced its bid for TWC in an un-collared all-stock deal and the entire group saw its M&A premium deflate. We think this deal will get done with a minimum of fuss, and we see the potential for upside to Comcast’s forecast for synergies. We expect cable will continue to be challenged by new OTT entrants and rising capital intensity, but we believe Comcast is uniquely well positioned to handle this situation, and we believe TWC will reap significant benefits from having Comcast’s template imposed on it, which should support increased capital returns once the deal closes. “We also believe Comcast sees billion-dollar-plus opportunities in wireless and advertising as a result of the scale the deal provides. We are trimming our target price on CMCSA to reflect the general pullback in cable multiples; however, we still see the potential for significant upside as implied in our new $60 target, which in turn would imply a fair value of $165 for TWC given the all-stock structure of the deal.”
In other Time Warner Cable news, EVP Marc Lawrence-Apfelbaum unloaded 8,000 shares of the stock on the open market in a transaction dated Monday, April 21st. The shares were sold at an average price of $135.94, for a total transaction of $1,087,520.00. Following the completion of the transaction, the executive vice president now directly owns 4,985 shares of the company’s stock, valued at approximately $677,661. The sale was disclosed in a filing with the SEC, which is available at this link.
Time Warner Cable (NYSE:TWC) traded down 0.65% during mid-day trading on Monday, hitting $139.49. The stock had a trading volume of 747,144 shares. Time Warner Cable has a 1-year low of $92.17 and a 1-year high of $147.28. The stock has a 50-day moving average of $137.3 and a 200-day moving average of $131.7. The company has a market cap of $38.702 billion and a price-to-earnings ratio of 20.96.
Time Warner Cable (NYSE:TWC) last announced its earnings results on Thursday, April 24th. The company reported $1.70 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.68 by $0.02. The company had revenue of $5.58 billion for the quarter, compared to the consensus estimate of $5.64 billion. During the same quarter in the previous year, the company posted $1.41 earnings per share. The company’s revenue for the quarter was up 2.0% on a year-over-year basis. On average, analysts predict that Time Warner Cable will post $7.67 earnings per share for the current fiscal year.
A number of other analysts have also recently weighed in on TWC. Analysts at Brean Capital upgraded shares of Time Warner Cable from a “hold” rating to a “buy” rating in a research note on Monday. They now have a $165.00 price target on the stock, up previously from $60.00. Separately, analysts at Wells Fargo & Co. upgraded shares of Time Warner Cable from a “market perform” rating to an “outperform” rating in a research note on Wednesday, April 16th. They now have a $160.00 price target on the stock, up previously from $132.50. Finally, analysts at Wunderlich raised their price target on shares of Time Warner Cable from $138.00 to $146.00 in a research note on Monday, April 7th. Ten analysts have rated the stock with a hold rating and eleven have assigned a buy rating to the company. The stock presently has a consensus rating of “Buy” and a consensus price target of $146.29.
Time Warner Cable Inc (NYSE:TWC) is a provider of video, high-speed data and voice services in the United States with systems located in five geographic areas: New York State, the Carolinas, Ohio, Southern California and Texas.
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