Wells Fargo Upgrades Time Warner Cable (TWC) to Outperform; Finally See A Path To Operational Upside - Swap Out of CVC

Wells Fargo upgraded Time Warner Cable (NYSE: TWC) from Market Perform to Outperform with a price target range of $74-$76 (from $67-69).

Wells analyst says, "With the announced sale of Spectrum Co. and
the newly formed joint venture with Verizon Wireless (12/2), we see the potential for significant operational upside for those cable companies involved - namely Comcast (Nasdaq: CMCSA), TWC and Bright House (private). While there are still some hurdles for this deal to close - specifically approval by the FCC and DOJ - we would say the overall odds of closing are pretty high given this sale would ensure the 122 AWS spectrum licenses would be put to their "most efficient use" (at least relative to just sitting on the cable companies' balance sheets)."

"When thinking about operational upside potential, we don’t see much for CVC given FiOS is likely to remain aggressive as its physical build ends - plus the closing of the terrestrial loophole could cause further problems. We
downgrade CVC to Market Perform."

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 $63.80 yesterday.

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