Needham & Company Raises Price Target on Time Warner Cable (TWC); Previews 2Q11

Needham & Company retains a 'Buy' on Time Warner Cable (NYSE: TWC), raises PT from $80 to $95.

Needham analyst says, "TWC will release FY2Q11 results on Thursday, July 28th before the open of the market and management will host an earnings call at 8:30am ET to discuss results...we update our 2Q11 estimates, as follows: Revenue of $4.896B, up 3% y/y, (above our previous estimate), including advertising revenue of $233M, up 20% y/y, (no change from our previous estimate). Our estimates for 2Q11 reflect lower sub adds, offset by higher ARPU estimates, resulting in 0.6% higher revenue of $4.896B. For FY11, the flow-through raises revenue by 0.2% to $19.564B...EPS rises by $0.01 to $1.15 in 2Q11 owing to a slightly lower tax rate and fewer shares outstanding vs our previous expectations. For FY11, this also adds about $0.02 and takes our FY11 estimate to $4.52. For 2H11, we factor in the impact of TWC’s sterling debt offering which closed in May of 2011."

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 $79.63 yesterday.

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