Nomura Securities Maintains a 'Buy' on Time Warner Cable (TWC); Early Signs Of Improvement, Valuation Discount Remains
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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, "We believe that TWC offers the best risk/reward within our coverage universe. The shares currently trade with a 3% dividend yield, 5x 2012E EBITDA, and 8x 2012E FCF. In our view, the likelihood of 2012 & 2013 ~20% free cash flow per share growth is not appreciated in the valuation. We believe the near-term concerns are already factored into valuation and are focused on achievable estimates and incremental shareholder return opportunities in 2012. By our estimates, the last time TWC shares were as attractively valued was in 2010, a time when there was a legitimate fear that the broadband business would become subject to price regulation, and over-the-top fears were making headlines. We have updated our 4Q11 and 2012 estimates to include the 11/2/11 acquisition of NewWave Communications. Our 2011E EPS goes from $4.34 to $4.42 and 2012E from $5.37 to $5.55."
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 $64.86 yesterday.
Nomura analyst, Mike McCormack, said, "We believe that TWC offers the best risk/reward within our coverage universe. The shares currently trade with a 3% dividend yield, 5x 2012E EBITDA, and 8x 2012E FCF. In our view, the likelihood of 2012 & 2013 ~20% free cash flow per share growth is not appreciated in the valuation. We believe the near-term concerns are already factored into valuation and are focused on achievable estimates and incremental shareholder return opportunities in 2012. By our estimates, the last time TWC shares were as attractively valued was in 2010, a time when there was a legitimate fear that the broadband business would become subject to price regulation, and over-the-top fears were making headlines. We have updated our 4Q11 and 2012 estimates to include the 11/2/11 acquisition of NewWave Communications. Our 2011E EPS goes from $4.34 to $4.42 and 2012E from $5.37 to $5.55."
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 $64.86 yesterday.
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