UPDATE: Citigroup Raises PT to $30 on TW Telecom on Strong YTD Performance
Citigroup reiterates its Buy rating on TW Telecom (NASDAQ: TWTC) and raises its price target from $28 to $30.
Citigroup comments, "Shares of TWTC are up 41% since 2/7/11 and up 34% year-todate vs. the S&P 500 up 8.6% and the S&P Telecom index up 13.3%. We remain a Buyer of TWTC based on: 1) accelerating revenue growth to an above consensus rate for FY12; 2) positive operating leverage that should drive upside to consensus OIBDA & support a rising return on gross invested capital; 3) room to improve shareholder returns with announced share repurchase program, rising FCF, & balance sheet flexibility; & 4) positive option value as a possible acquisition candidate as larger wireline Telcos, such as CTL, WIN, & the cable MSOs, seek increased exposure to the business segment within the telecom market over time."
TWTC closed at $25.96 on Monday.
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