Wall Street Could Rotate Into Time Warner (TWX) - Analyst

October 3, 2012 9:00 AM EDT
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Price: $96.35 -0.43%

Rating Summary:
    26 Buy, 19 Hold, 0 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 19 | Down: 19 | New: 13
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Canaccord Genuity raised its price target on Buy-rated Time Warner (NYSE: TWX) from $41 to $53 as they expected the Street to rotate into the stock.

"With several large entertainment stocks close to their 52-week highs, we expect the Street is looking for stocks to rotate into. We believe that TWX is one of those stocks," analyst Thomas Eagan said. "While true that TWX's fastest growth may not occur until 2014-2015 (with the bulk renewal of Turner affiliate deals), we expect OIBDA and AOI growth will start to accelerate in 4Q12."

The firm lowered 3Q12 OIBDA and AOI estimates, but increasing 4Q12 estimates. For FY12 OIBDA and AOI estimates increase to $6.928bn and $6.047bn, respectively. For FY13, the firm introduced OIBDA of $7.284bn and AOI of $6.422bn or 5.1% and 6.2% growth, respectively.

Eagan also expects Time Warner to raise its dividend by at least 10% in early 2013 and also increase the pace of share repurchases.

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 $45.30 yesterday.

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