Pivotal Research Says tw telecom (TWTC) Best Positioned Telecom Play, Initiates Buy

Pivotal Research initiated coverage on tw telecom (NASDAQ: TWTC) with a Buy rating and a price target of $32.00.

Analyst Steve Sweeney called the company one of the best positioned telecom plays in the US.

"We think TWTC’s improving EBITDA margins and free cash flow, as well as a top line revenue growth rate that is about to accelerate based on our estimates," said Sweeny. "With $531 million in cash on the balance sheet, low leverage, and $60 million+ of equity free cash flow for 2012 based on our estimates, TWTC will use the excess cash to either initiate a regular cash dividend or to become more aggressive on its existing $300 million stock buyback."

For an analyst ratings summary and ratings history on tw telecom click here. For more ratings news on tw telecom click here.

Shares of tw telecom closed at $26.10 yesterday.

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