Time Warner (TWX) PT Raised to $105 at Wedbush
Wedbush analyst James Dix raised his price target on Neutral-rated Time Warner (NYSE: TWX) to $105.00 (from $90.00) after the company agreed to be acquired by AT&T.
Dix commented, "AT&T’s $107.50 per share, 50-50 cash-stock (less if T<$37.411, more if >$41.349), is almost 20% above our prior PT, a control premium too good for TWX to pass up. Questions about AT&T’s strategy—now of vertical integration (er, building a better bundle), apparently—, escalating regulatory hurdles for those deciding they want to be Comcast when they grow up, and dynastic control of the other large-cap media companies we cover lead us to see this as a one-time TWX bonanza, not the beginning of a big media gold rush. Candidate Donald Trump has tweeted his opposition to the deal. Trivia—TWX pre-announced 3Q EPS beat."
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Shares of Time Warner closed at $89.48 yesterday.