Canaccord Genuity on Media: 2012 Cable Show in Boston
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Rating Summary:
24 Buy, 25 Hold, 3 Sell
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Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
Rating Summary:
24 Buy, 25 Hold, 3 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
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Canaccord Genuity on Media: 2012 Cable Show in Boston
Analyst, Thomas Eagan, said, "Although some would describe the mood at the 2012 Cable Show as subdued, we see no reason for the industry to feel anything but upbeat. Risks that have plagued recent shows, such as OTT (over-the-top) and regulation, have largely dissipated. On Tuesday’s General Session, FCC Chairman Julius Genachowski essentially endorsed usage-based pricing. Moreover, technology, which has been widely considered to be more of a threat than a benefit, is now being utilized to not only enhance existing services (such as an improved video UI, or user interface, as well as a broadband Skype service) but new services such as complete home monitoring and maintenance. And with most recent economic metrics appearing neutral to positive, we expect increased occupied homes and consumer confidence will translate to further increases in PayTV customers and ARPU."
On Individual Stocsk:
Comcast (Nasdaqq: CMCSA): Well positioned for 2013 - Clearly leading the sector in cable innovation, Comcast should be able to monetize its investment in X-1 (the platform designed for cloud-based UI to all home devices) and Streampix (its streaming service) with lower churn and higher ARPU.
Time Warner Cable (NYSE: TWC): $3bn repurchase likely - Although 2Q is a seasonally high churn quarter, we expect many of the promotions that helped re-ignite 1Q12’s data and voice net ads could continue into 2Q12. We therefore have an upward bias on many of our RGU as well as financial estimates.
Cablevision (NYSE: CVC): First inning of a turnaround - While the 2Q12 y/y AOCF margin decline may not fall as great as 1Q12’s did (from 39.3% to 36.3%), we expect flat to down revenue for the legacy CVC operations for several more quarters and declining OCF through EOY12.
Analyst, Thomas Eagan, said, "Although some would describe the mood at the 2012 Cable Show as subdued, we see no reason for the industry to feel anything but upbeat. Risks that have plagued recent shows, such as OTT (over-the-top) and regulation, have largely dissipated. On Tuesday’s General Session, FCC Chairman Julius Genachowski essentially endorsed usage-based pricing. Moreover, technology, which has been widely considered to be more of a threat than a benefit, is now being utilized to not only enhance existing services (such as an improved video UI, or user interface, as well as a broadband Skype service) but new services such as complete home monitoring and maintenance. And with most recent economic metrics appearing neutral to positive, we expect increased occupied homes and consumer confidence will translate to further increases in PayTV customers and ARPU."
On Individual Stocsk:
Comcast (Nasdaqq: CMCSA): Well positioned for 2013 - Clearly leading the sector in cable innovation, Comcast should be able to monetize its investment in X-1 (the platform designed for cloud-based UI to all home devices) and Streampix (its streaming service) with lower churn and higher ARPU.
Time Warner Cable (NYSE: TWC): $3bn repurchase likely - Although 2Q is a seasonally high churn quarter, we expect many of the promotions that helped re-ignite 1Q12’s data and voice net ads could continue into 2Q12. We therefore have an upward bias on many of our RGU as well as financial estimates.
Cablevision (NYSE: CVC): First inning of a turnaround - While the 2Q12 y/y AOCF margin decline may not fall as great as 1Q12’s did (from 39.3% to 36.3%), we expect flat to down revenue for the legacy CVC operations for several more quarters and declining OCF through EOY12.
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