Wunderlich Boosts Time Warner Price Target to $93.00 (TWX)
Equities researchers at Wunderlich increased their price target on shares of Time Warner (NYSE:TWX) from $83.00 to $93.00 in a research report issued on Monday. The firm currently has a “buy” rating on the stock. Wunderlich’s price target would suggest a potential upside of 21.57% from the stock’s previous close.
The analysts wrote, “Warner Bros. and Microsoft (MSFT-NR) are reportedly in tentative discussions that could have the studio acquiring the soon-to-be shuttered Santa Monica Xbox Entertainment Studios division. XES could then possibly be merged with Machinima, the video game/user generated content oriented YouTube network that is partly owned by Warner Bros. (XES programming still to be produced includes Halo: Nightfall and the slated Halo live-action TV series.) Beyond this interesting but modest deal, we feel that Buy-rated Time Warner’s (TWX) stock price over discounts film risk at Warner Bros. and (more pivotally) current advertising sluggishness at Turner Networks. We are now increasing our formal price target to $93 in 2015, vs. a former $83 2014 oriented target.”
Time Warner (NYSE:TWX) traded up 0.31% during mid-day trading on Monday, hitting $76.735. 294,115 shares of the company’s stock traded hands. Time Warner has a one year low of $57.5935 and a one year high of $88.13. The stock’s 50-day moving average is $77.80 and its 200-day moving average is $67.72. The company has a market cap of $65.596 billion and a P/E ratio of 16.26. Time Warner also was the recipient of a significant decline in short interest during 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. Based on an average trading volume of 15,431,423 shares, the days-to-cover ratio is currently 0.6 days. Approximately 1.1% of the shares of the stock are sold short.
Time Warner (NYSE:TWX) last issued its quarterly earnings data on Wednesday, August 6th. The company reported $0.98 earnings per share (EPS) for the quarter, beating the analysts’ 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 last year, the company posted $0.83 earnings per share. Time Warner’s revenue was up 2.7% compared to the same quarter last year. 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 1.66%. The ex-dividend date of this dividend is Wednesday, August 27th.
A number of other firms have also recently commented on TWX. Analysts at Zacks reiterated a “neutral” rating on shares of Time Warner in a research note on Wednesday, August 13th. They now have a $77.00 price target on the stock. Separately, analysts at Morgan Stanley reiterated an “overweight” rating on shares of Time Warner in a research note on Wednesday, August 13th. They now have a $85.00 price target on the stock, down previously from $95.00. Finally, 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, August 11th. They now have an “outperform” rating on the stock. One equities research analyst has rated the stock with a sell rating, eight have given a hold rating and eighteen have issued a buy rating to the stock. The stock has a consensus rating of “Buy” and a consensus target price of $83.09.
Time Warner Inc (NYSE:TWX) is a media and entertainment company.
Get Analysts' Upgrades and Downgrades via Email - Stay on top of analysts' coverage with Analyst Ratings Network's FREE daily email newsletter that provides a concise list of analysts' upgrades and downgrades. Click here to register now.