Nomura Securities Maintains a 'Buy' on Time Warner Cable (TWC); Valuation Very Compelling
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Price: $209.56 --0%
Rating Summary:
11 Buy, 20 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
11 Buy, 20 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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Nomura Securities maintains a 'Buy' on Time Warner Cable (NYSE: TWC) price target of $75.00.
Nomura analyst, Mike McCormack, said, "The shares currently trade with a 4% dividend yield, and at 5x 2012 EBITDA and 8x 2012 FCF. In our view, the likelihood of 20% free cash flow per share growth is not appreciated in today’s valuation. We believe the headwinds are well known, and likely limited to the near term. Longer term, we believe that estimates are easily achievable, and the outlook for growth is compelling. By our estimate, TWC will likely have over $2bn in excess capacity to manage the balance sheet by the end of 2012. Note that this expected capacity is in excess of the 100% of 2012 free cash flow expected to be returned to investors."
For an analyst ratings summary and ratings history on Time Warner Cable click here. For more ratings news on Time Warner Cable click here.
Shares of Time Warner Cable closed at $60.48 yesterday.
Nomura analyst, Mike McCormack, said, "The shares currently trade with a 4% dividend yield, and at 5x 2012 EBITDA and 8x 2012 FCF. In our view, the likelihood of 20% free cash flow per share growth is not appreciated in today’s valuation. We believe the headwinds are well known, and likely limited to the near term. Longer term, we believe that estimates are easily achievable, and the outlook for growth is compelling. By our estimate, TWC will likely have over $2bn in excess capacity to manage the balance sheet by the end of 2012. Note that this expected capacity is in excess of the 100% of 2012 free cash flow expected to be returned to investors."
For an analyst ratings summary and ratings history on Time Warner Cable click here. For more ratings news on Time Warner Cable click here.
Shares of Time Warner Cable closed at $60.48 yesterday.
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