Time Warner (TWX) PT Cut to $87 at Janney Capital

Janney Capital analyst Tony Wible raised estimates but lowered is price target on Buy-rated Time Warner (NYSE: TWX) to $87.00 (from $100.00) following Q2 results and the FOX takeover being dropped.

Wible commented, "TWX beat estimates by $0.10 on stronger margins that offset top line misses at Turner advertising, Warner, and HBO. TWX remains relatively well-positioned given the higher concentration of affiliate fees, the momentum at HBO, new consumer product monetization opportunities, international, and new franchises at Warner. However, it also has to cope with higher TV costs and a weaker advertising and ratings environment in the near term. The heavy mix of subscription revenue and accelerated share repurchases should help offset some of the ad uncertainty, but the recall of FOX’s takeover offer will have the biggest near term influence as investors need to now balance TWX’s long term strategic and near term fundamental values, which are at odds. While the probability of a deal is reduced, we still believe it is not improbable. We are modestly increasing estimates for FY14/FY15 but lower our FV to $87 (from our deal-based $100) to reflect this balance of fundamental and strategic value."

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 $74.24 yesterday.

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