Wells Fargo Downgrades Time Warner Cable (TWC) to Market Perform; Shares Are Likely Range Bound
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Price: $103.01 +1.70%
Rating Summary:
10 Buy, 12 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 12 | New: 30
Rating Summary:
10 Buy, 12 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 12 | New: 30
Trade TWC Now!
Wells Fargo downgraded Time Warner Cable (NYSE: TWC) from Outperform to Market Perform with a price target range of $67-$69 (from $76-$78).
Wells analyst says, "We don’t need to rehash the quarter, but want to address what we believe are the biggest investor concerns. We spent a lot of time updating our model and ultimately reduced our PSU expectations by 29% and 42% for 2011 and 2012, respectively. We also reduce 2011E and 2012E EPS to $4.45 and $5.54 from $4.51 and $5.66, respectively. Importantly, we have not yet incorporated Insight, which is expected to close in H1 2012. BOTTOM LINE: While we believe yesterday's (10/27) sell off in TWC (-7.7% vs. the S&P +3.4%) was probably a little bit overdone, we see no near-term catalyst in operations or in incremental capital returns, which is likely to leave the stock range bound."
For more ratings news on Time Warner Cable click here and for the rating history of Time Warner Cable click here.
Shares of Time Warner Cable closed at $65.21 yesterday, with a 52 week range of $56.84-$80.86.
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Wells analyst says, "We don’t need to rehash the quarter, but want to address what we believe are the biggest investor concerns. We spent a lot of time updating our model and ultimately reduced our PSU expectations by 29% and 42% for 2011 and 2012, respectively. We also reduce 2011E and 2012E EPS to $4.45 and $5.54 from $4.51 and $5.66, respectively. Importantly, we have not yet incorporated Insight, which is expected to close in H1 2012. BOTTOM LINE: While we believe yesterday's (10/27) sell off in TWC (-7.7% vs. the S&P +3.4%) was probably a little bit overdone, we see no near-term catalyst in operations or in incremental capital returns, which is likely to leave the stock range bound."
For more ratings news on Time Warner Cable click here and for the rating history of Time Warner Cable click here.
Shares of Time Warner Cable closed at $65.21 yesterday, with a 52 week range of $56.84-$80.86.
Join StreetInsider.com FREE and get immediately alerted when news breaks on your stocks and other market items - JOIN NOW
*NEW - Download StreetInsider's FREE iPhone and iPad App - Click Here
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