Needham & Company Maintains a 'Hold' on Time Warner (TWX); ROIC Analysis

Needham & Company maintains a 'Hold' on Time Warner (NYSE: TWX).

Analyst, Laura Martin, said, "We calculate that there is currently an 89% correlation between FY12E ROIC and media industry share prices. Wall St closely follows the income statement, ie, the numerator. In this quarterly report, we analyze the denominator - trends in assets intensity, capital allocation, working capital changes, TV and film investments, and free cash flow...We estimate that TWX’s ROIC will increase by approximately 50 basis points to 7.3% in FY12E. This is among the lowest increases in our coverage universe. TWX’s WACC should remain at about 8.9%, by our estimates."

For an analyst ratings summary and ratings history on Time Warner click here. For more ratings news on Time Warner click here.

Shares of Time Warner closed at $36.72 yesterday.

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