Nomura Securities Reiterates a 'Buy' on Virgin Media (VMED); Dip Offers Opportunity
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Price: $51.00 --0%
Rating Summary:
2 Buy, 8 Hold, 2 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
2 Buy, 8 Hold, 2 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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Nomura Securities reiterates a 'Buy' on Virgin Media (NASDAQ: VMED) price target of $33.50.
Nomura analyst, Henrik Nyblom, said, "We reiterate our rating (PT unchanged at USD 33.5) following yesterday’s results on the back of which the shares fell 6.5% driven by management’s suggestion that it will evaluate whether to increase capex in order to accelerate top line growth. This caused some concern in the market although we feel that the share price reaction was overdone. While we believe the statement is perhaps a quarter or two too early, we don’t think management should be faulted for evaluating opportunities, and thus see yesterday’s over-reaction as an attractive buying opportunity, with the shares likely to be supported by the buyback programme, which amounts to c.13% of its outstanding shares. In addition to this, there are signs of a more healthy competitive UK environment, TiVo momentum is building and the broadband advertising standards are becoming more supportive. Valuation remains attractive with the stock trading on a 2012E EV/OpFCF of 10.2x with an equity FCF yield of 12% representing a significant discount vs. its European peers trading on 11.2x and 9.6%."
For more ratings news on Virgin Media click here and for the rating history of Virgin Media click here.
Shares of Virgin Media closed at $26.07 yesterday.
Nomura analyst, Henrik Nyblom, said, "We reiterate our rating (PT unchanged at USD 33.5) following yesterday’s results on the back of which the shares fell 6.5% driven by management’s suggestion that it will evaluate whether to increase capex in order to accelerate top line growth. This caused some concern in the market although we feel that the share price reaction was overdone. While we believe the statement is perhaps a quarter or two too early, we don’t think management should be faulted for evaluating opportunities, and thus see yesterday’s over-reaction as an attractive buying opportunity, with the shares likely to be supported by the buyback programme, which amounts to c.13% of its outstanding shares. In addition to this, there are signs of a more healthy competitive UK environment, TiVo momentum is building and the broadband advertising standards are becoming more supportive. Valuation remains attractive with the stock trading on a 2012E EV/OpFCF of 10.2x with an equity FCF yield of 12% representing a significant discount vs. its European peers trading on 11.2x and 9.6%."
For more ratings news on Virgin Media click here and for the rating history of Virgin Media click here.
Shares of Virgin Media closed at $26.07 yesterday.
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