Morgan Stanley Reiterates “Overweight” Rating for Time Warner (TWX)
Time Warner (NYSE:TWX)‘s stock had its “overweight” rating reaffirmed by research analysts at Morgan Stanley in a report released on Wednesday. They currently have a $85.00 price objective on the stock, down from their previous price objective of $95.00. Morgan Stanley’s price target points to a potential upside of 16.37% from the company’s current price.
The analysts wrote, “Following Fox’s withdrawal of its bid and pullback in shares, we remain OW as focus shifts back to fundamental outlook, where we remain bullish and above consensus. Our fundamental-only base case target of $85 is roughly 15x ’16E EPS, and we see a credible 20% EPS CAGR bull case to $100.”
TWX has been the subject of a number of other recent research reports. Analysts at FBR Capital Markets cut their price target on shares of Time Warner from $90.00 to $85.00 in a research note on Monday. They now have an “outperform” rating on the stock. Separately, analysts at RBC Capital raised their price target on shares of Time Warner from $76.00 to $77.00 in a research note on Thursday, August 7th. They now have an “outperform” rating on the stock. Finally, analysts at Evercore Partners cut their price target on shares of Time Warner from $85.00 to $80.00 in a research note on Thursday, August 7th. They now have an “equal weight” rating on the stock. One research analyst has rated the stock with a sell rating, seven have given a hold rating and eighteen have assigned a buy rating to the stock. Time Warner currently has an average rating of “Buy” and an average target price of $87.77.
Time Warner (NYSE:TWX) opened at 73.04 on Wednesday. Time Warner has a one year low of $57.5935 and a one year high of $88.13. The stock has a 50-day moving average of $77.22 and a 200-day moving average of $67.49. The company has a market cap of $62.437 billion and a price-to-earnings ratio of 15.53. Time Warner also was the target of a large decline in short interest in the month of July. As of July 31st, there was short interest totalling 9,936,194 shares, a decline of 29.2% from the July 15th total of 14,043,805 shares. Currently, 1.1% of the shares of the company are sold short. Based on an average trading volume of 15,431,423 shares, the days-to-cover ratio is presently 0.6 days.
Time Warner (NYSE:TWX) last announced its earnings results on Wednesday, August 6th. The company reported $0.98 EPS for the quarter, beating the Thomson Reuters consensus estimate of $0.84 by $0.14. The company had revenue of $6.80 billion for the quarter, compared to the consensus estimate of $6.87 billion. During the same quarter in the prior year, the company posted $0.83 earnings per share. The company’s quarterly revenue was up 2.7% on a year-over-year basis. On average, analysts predict that Time Warner will post $4.01 earnings per share for the current fiscal year.
The company also recently declared a quarterly dividend, which is scheduled for Monday, September 15th. Stockholders of record on Sunday, August 31st will be given a dividend of $0.3175 per share. This represents a $1.27 dividend on an annualized basis and a yield of 1.74%. The ex-dividend date of this dividend is Wednesday, August 27th.
Time Warner Inc (NYSE:TWX) is a media and entertainment company.
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