Nomura Securities Maintains a 'Buy' on Virgin Media (VMED); Q4 Review
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Price: $51.00 --0%
Rating Summary:
2 Buy, 8 Hold, 2 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 17 | Down: 14 | New: 16
Rating Summary:
2 Buy, 8 Hold, 2 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 17 | Down: 14 | New: 16
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Nomura Securities maintains a 'Buy' on Virgin Media (NASDAQ: VMED) price target of $33.50.
Analyst, Henrik Nybloom, said, "VMED reported an overall solid set of Q4 results last week, but more importantly delivered signs of promise for the year ahead - we expect further improvement in the operating trends in coming quarters. Within the mix, lower-than expected cable and mobile revenues were compensated for by a stronger performance in B2B. TiVo continued to gain traction and the number of customers more than doubled to 435k. VMED’s valuation is compelling, trading at 2012E EV/Op.FCF of 11.6x and an equity FCF yield of 10%, a discount to its European peers at 12x and 7.9%, respectively. Shares are also well supported by the ongoing buy-back program, of which the remaining £450m should allow VMED to repurchase c.10% of its current market cap before end of 2012. We change our 2011/2012/2013 EPS estimates go to $0.31/$1.19/$1.67 (from $0.25/$1.34/$1.93) to reflect lower off-net contribution and lower mobile handset revenues."
For an analyst ratings summary and ratings history on Virgin Media click here. For more ratings news on Virgin Media click here.
Shares of Virgin Media closed at $25.30 yesterday.
Analyst, Henrik Nybloom, said, "VMED reported an overall solid set of Q4 results last week, but more importantly delivered signs of promise for the year ahead - we expect further improvement in the operating trends in coming quarters. Within the mix, lower-than expected cable and mobile revenues were compensated for by a stronger performance in B2B. TiVo continued to gain traction and the number of customers more than doubled to 435k. VMED’s valuation is compelling, trading at 2012E EV/Op.FCF of 11.6x and an equity FCF yield of 10%, a discount to its European peers at 12x and 7.9%, respectively. Shares are also well supported by the ongoing buy-back program, of which the remaining £450m should allow VMED to repurchase c.10% of its current market cap before end of 2012. We change our 2011/2012/2013 EPS estimates go to $0.31/$1.19/$1.67 (from $0.25/$1.34/$1.93) to reflect lower off-net contribution and lower mobile handset revenues."
For an analyst ratings summary and ratings history on Virgin Media click here. For more ratings news on Virgin Media click here.
Shares of Virgin Media closed at $25.30 yesterday.
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