Canaccord Genuity Maintains a 'Hold' on tw telecom (TWTC); Q1 Preview; Possible M&A Candidate

May 1, 2012 9:09 AM EDT Send to a Friend
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Price: $41.84 +1.63%

Rating Summary:
    3 Buy, 13 Hold, 2 Sell

Rating Trend: Down Down

Today's Overall Ratings:
    Up: 27 | Down: 26 | New: 17
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Canaccord Genuity maintains a 'Hold' on tw telecom (NASDAQ: TWTC) price target of $21.00.

Analyst, Greg Miller, said, "Although we have rated tw telecom with a HOLD rating since March of 2010 when its stock price spiked on speculation that Time Warner Cable (NYSE: TWC) was interested in acquiring it, we once again find interest in the name due to the steady return of enterprise revenue growth which hit 11.2% y/y growth in Q4/11, a rate not seen since the recession begun. Should enterprise revenue growth continue to improve without significant additional capital expenditures, we could find the stock more attractive...we believe TWTC represents an attractive target for Level 3 (Nasdaq: LVLT), which recently purchased Global Crossing for a 50% premium to its historical valuation."

"We expect $358.6mm of revs (7.8% y/y) and $127.6mm adjusted EBITDA (5.1% y/y and 35.6% margin)."

For an analyst ratings summary and ratings history on tw telecom click here. For more ratings news on tw telecom click here.

Shares of tw telecom closed at $21.80 yesterday.


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