Nomura Securities Maintains a 'Neutral' on Time Warner (TWX); Updating Estimates

Nomura Securities maintains a 'Neutral' on Time Warner (NYSE: TWX) price target of $36.00.

Nomura analyst, Michael Nathanson, said, "We are raising 2011E EPS by $0.07 to $2.84 after flowing through today’s $0.03 beat as well as incorporating incremental 4Q revenue related to the CW/Netflix content deal. This represents EPS growth of 18% Y/Y, in line with the company’s raised guidance of “high teens”. Our higher EPS is driven by upside to Film estimates offset by lower Cable Networks projections. We rate Time Warner Neutral with a new price target of $36 (from $33) reflecting a higher market multiple to the S&P 500 on our raised 2012E EPS (+$0.07 to $3.10 reflecting Netflix (Nasdaq: NFLX) and $2bn of buybacks).

For more ratings news on Time Warner click here and for the rating history of Time Warner click here.

Shares of Time Warner closed at $33.57 yesterday.

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