Goldman Sachs Upgrades Time Warner (TWX) to Buy

Goldman Sachs upgraded Time Warner (NYSE: TWX) from Neutral to Buy with a price target of $37 (down from $39).

The firm reduced 2012 and 2013 revenue estimates by less than 1% and EPS estimates by 1%-2% to $29.6 bn, $30.9 bn, $3.10, and $3.56, respectively.

The firm rates the shares at Buy given: "(1) defensive characteristics, namely capital allocation (sector high shareholder return yield – dividends plus buybacks – of 14% in 2012) and relatively low ad exposure (20% vs. peers at about 35%); (2) potential cable ratings improvement at TBS and TNT due to easing comps and new programs coming on air such as The Big Bang Theory and The Mentalist; and (3) future online streaming deals, which could add $500 mn of profit and boost EPS by
2%-4%."

For more ratings news on Time Warner click here and for the rating history of Time Warner click here.

Shares of Time Warner closed at $29.97 yesterday.

---

Serious News for Serious Traders! Try StreetInsider.com Premium Free!

---

You May Also Be Interested In

• BofA Securities Upgrades Tesla (TSLA) to Buy on wind up of positive catalysts
• B.Riley Upgrades The Children's Place (PLCE) to Neutral
• RBC Capital Upgrades Galp Energia SGPS SA (GALP:LI) (GLPEF) to Outperform