Nomura Securities Maintains a 'Neutral' on Time Warner (TWX); Maintaining 2012 Outlook; Three Factors To Consider
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Price: $2.23 --0%
Rating Summary:
14 Buy, 24 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
14 Buy, 24 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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Nomura Securities maintains a 'Neutral' on Time Warner (NYSE: TWX) price target raised $1 to $42.
Analyst, Michael Nathanson, said, "We are maintaining our 2012E EPS at $3.16, as the $0.03 beat in 1Q is offset by lower 2Q expectations and more 2H12 weighted than previously expected...We are reducing our Networks 2012 revenue growth projection by 50bps to 4.9% Y/Y...We still expect a tough year at the Film segment despite $75mn of SVOD money in 1Q and $200mn in 2012, up from estimated $150mn last year."
"With YTD stock performance lagging the S&P 500 market by over 800bps, we believe three factors will determine investor sentiment over the shorter term: 1) how TBS laps The Big Bang Theory in the fall, 2) signs of TNT ratings improving with new product beginning in June, and 3) studio results against a tough 2011 comp. Longer term, signs of affiliate fee growth acceleration at Turner would give support to earnings stability, with material contracts coming up for renewal over the 2014-16 time frame."
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 $37.29 yesterday.
Analyst, Michael Nathanson, said, "We are maintaining our 2012E EPS at $3.16, as the $0.03 beat in 1Q is offset by lower 2Q expectations and more 2H12 weighted than previously expected...We are reducing our Networks 2012 revenue growth projection by 50bps to 4.9% Y/Y...We still expect a tough year at the Film segment despite $75mn of SVOD money in 1Q and $200mn in 2012, up from estimated $150mn last year."
"With YTD stock performance lagging the S&P 500 market by over 800bps, we believe three factors will determine investor sentiment over the shorter term: 1) how TBS laps The Big Bang Theory in the fall, 2) signs of TNT ratings improving with new product beginning in June, and 3) studio results against a tough 2011 comp. Longer term, signs of affiliate fee growth acceleration at Turner would give support to earnings stability, with material contracts coming up for renewal over the 2014-16 time frame."
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 $37.29 yesterday.
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