Nomura Securities on U.S. Cable & Satellite: Favorable Trends For Cable Equities
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Price: $209.56 --0%
Rating Summary:
11 Buy, 20 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 6 | New: 26
Rating Summary:
11 Buy, 20 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 6 | New: 26
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Nomura Securities on U.S. Cable & Satellite: Favorable Trends For Cable Equities
Analyst, Mike McCormack, said, "We see an increasingly positive backdrop materializing for the Cable operators. With attractive relative valuations, we remain positively biased towards the sector. Our top pick in Cable is Time Warner Cable (NYSE: TWC) given a discounted valuation, and significant opportunity for continued return of cash to shareholders. We have raised our TWC price target to $90 from $85 previously...We believe that PayTV operators have benefited from a housing-fueled tailwind for a year now. Should evidence materialize that new housing units are being created, or that vacancy trends migrate below long-term averages, we would expect PayTV trends and sentiment to benefit further."
"For over a year, capital returns have been central to the pay TV investment thesis. Going forward, we see the enthusiasm around capital returns to shift to Comcast and Time Warner Cable from the current consensus-favorite name, DIRECTV (NYSE: DTV)."
"AT&T (NYSE: T) and Verizon (NYSE: VZ) watching the bottom line: We believe both AT&T and Verizon have limited incentive to get more aggressive in the residential PayTV segment in 2012, as stable wireline operating incomes are requisite to achieve EPS growth targets."
Analyst, Mike McCormack, said, "We see an increasingly positive backdrop materializing for the Cable operators. With attractive relative valuations, we remain positively biased towards the sector. Our top pick in Cable is Time Warner Cable (NYSE: TWC) given a discounted valuation, and significant opportunity for continued return of cash to shareholders. We have raised our TWC price target to $90 from $85 previously...We believe that PayTV operators have benefited from a housing-fueled tailwind for a year now. Should evidence materialize that new housing units are being created, or that vacancy trends migrate below long-term averages, we would expect PayTV trends and sentiment to benefit further."
"For over a year, capital returns have been central to the pay TV investment thesis. Going forward, we see the enthusiasm around capital returns to shift to Comcast and Time Warner Cable from the current consensus-favorite name, DIRECTV (NYSE: DTV)."
"AT&T (NYSE: T) and Verizon (NYSE: VZ) watching the bottom line: We believe both AT&T and Verizon have limited incentive to get more aggressive in the residential PayTV segment in 2012, as stable wireline operating incomes are requisite to achieve EPS growth targets."
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