Deutsche Bank Upgrades Time Warner Cable (TWC) to Buy; Bottoming Fundamentals and M&A

November 4, 2013 6:58 AM EST
Get Alerts TWC Hot Sheet
Price: $209.56 --0%

Rating Summary:
    13 Buy, 21 Hold, 0 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 35 | Down: 31 | New: 11
Trade TWC Now!
Join SI Premium – FREE
Deutsche Bank upgraded Time Warner Cable (NYSE: TWC) from Hold to Buy with a price target of $141.00 (from $109.00) on bottoming fundamentals and potential M&A.

Analyst Brian Russo believes the company's poor fundamentals are bottoming in 3Q13/4Q13. Also, new management will help with strategy and execution, including a willingness to invest more aggressively to improve video and customer service, return of capital remains strong. In addition, the analyst views has shifted regarding M&A and they now expect a tie-up between Charter Communications, Inc. (NASDAQ: CHTR) and Time Warner Cable is "more likely than not."

In the past the analyst believed the gap between TWC and CHTR on price was too wide. That gap has now narrowed given CHTR's stock performance, CHTR (Hold, $138) mgmt offering incremental positive commentary in Sept. regarding operating momentum, LMCA having raised incremental capital, the debt market remaining open & attractive, and TWC's terrible 2H13 results, he said. They also believe a majority of TWC investors would be willing to take a $140 offer from CHTR.

For an analyst ratings summary and ratings history on Time Warner Cable click here. For more ratings news on Time Warner Cable click here.

Shares of Time Warner Cable closed at $123.51 yesterday.

Serious News for Serious Traders! Try Premium Free!

You May Also Be Interested In

Related Categories

Analyst Comments, Analyst PT Change, Hot Upgrades, Rumors, Upgrades

Related Entities

Deutsche Bank

Add Your Comment