Wells Fargo Downgrades Time Warner Cable (TWC) to Market Perform; Shares Are Likely Range Bound

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.

---

Serious News for Serious Traders! Try StreetInsider.com Premium Free!

---

You May Also Be Interested In

• Wells Fargo Downgrades Roku Inc. (ROKU) to Equal Weight
• Lake Street Downgrades SoundThinking (SSTI) to Hold
• JPMorgan Downgrades KinderCare Learning Companies (KLC) to Underweight