Time Warner (TWX) Raising PT On Increasing Focus on OTT - Wedbush

Wedbush analyst, James Dix, reiterated his Outperform rating on shares of Time Warner (NYSE: TWX) and increased his price target to $90.00 (from $88.00). The analyst believes that the Hulu strategy highlights TWX’s strong portfolio of networks, as part of its competitive position as a top TV content pick. While HBO Now experiences it strongest quarter in 2Q, Hulu will provide TWX with more exposure to the secular growth in the OTT market starting in earnest next year.

OTT has become a significant initiative for TWX. On the call, management called HBO Now its most significant initiative to date. TWX’s 10% ownership investment in Hulu (purchased on 8/2 for $583m) should provide TWX with exposure to longer term growth opportunities of Hulu, as well as higher affiliate fee and ad revenue. The stakes of the other three Hulu owners should drop proportionately.

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 $77.83 yesterday.

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