Nomura Securities Maintains a 'Buy' on Time Warner Cable (TWC); Impressive Execution Against Low Expectations

Nomura Securities maintains a 'Buy' on Time Warner Cable (NYSE: TWC) price target raised from $75 to $85.

Analyst, Mike McCormack, said, "Time Warner Cable delivered better-than-expected subscriber trends, an improving revenue per subscriber profile, as well as clarity on its capital return strategy. We are encouraged by the early signs of success in Time Warner Cable’s Voice product. Year-on-year service revenue per home passed growth improved sequentially by 30bps to 3.3%. With the increased capacity in the repurchase authorization, we have increased our outlook for 2H12 share repurchases to $600mn per quarter. With the shares trading at 8x 2013 FCF and a 15% discount to Comcast (Nasdaq: CMCSK)(Nasdaq: CMCSA) on levered metrics, we remain positively biased towards the shares, even after today’s move. Our 2011E EPS goes from $4.42 to $4.99 and 2012E from $5.55 to $5.53."

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 $74.51 yesterday.

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