Goldman Sachs Delivers Positive News For Virgin Media Inc. (VMED)
July 28, 2010 10:38 AM
Goldman Sachs is out with a research report this morning on Virgin Media Inc. (VMED); after the company reported strong 2Q results. The analysts at Goldman noted that its price target and estimates are currently under review.
Goldman Sachs mentions, “VMED beat company-compiled consensus revenue expectations by 2.7%, OCF expectations by 3.7% and FCF by 3.6%. Upside was driven by the return to growth of both the Business and Mobile divisions, which exceeded revenue expectations by >10%.”
The analysts at Goldman Sachs added, “We believe the new target capital structure/capital returns plan finds a sensible balance between risk and reward, leaving VMED on the cusp of investment grade while signaling management’s willingness to
return cash to shareholders via accretive share buybacks.”
The strong earnings beat was highly anticipated by Goldman, however, clarity on capital returns should allow for VMED to sustain recent gains.
