Time Warner (TWX) PT Raised to $107.50 at Nomura Following Deal

October 24, 2016 7:36 AM EDT
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Nomura Securities analyst Anthony DiClemente raised his price target on Neutral-rated Time Warner (NYSE: TWX) to $107.50 (from $85.00) after the company agreed to be acquired by AT&T for $107.50 a share (50/50 cash and stock), a 36% premium to Wednesday's close (prior to reports of a potential acquisition) and a total transaction value of $108.7bn; the acquisition values TWX at 17.6x our 2017 EPS estimate, and is expected to close by year end 2017.

DiClemente commented, "... we raise our TP to $107.50, as we assume that the transaction clears regulatory reviews. In TWX, AT&T would gain access to a plethora of high-quality media content, to be distributed in presumably new ways across AT&T's mobile video platform, including the soon-to-belaunched DTV Now. We also think the acquisition may represent a positive lateral read on the broader value of media assets; however, we really do not anticipate a wave of Media M&A activity triggered here, given the lack of clearly visible content/distribution synergies and given closely held ownership structures."

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

Shares of Time Warner closed at $89.48 yesterday.



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