Wunderlich Securites: Virgin Media can Maintain Durable Business Model
In a research report published this morning by Wunderlich Securities, Virgin Media (NASDAQ: VMED) will still maintain a durable business model, despite rapid flux in U.K. television.
According to Wunderlich Securities, "At current prices, we have Virgin able to retire 50% of its shares through 2016 just off FCF, with WSI modeling actual 48% shrinkage after price appreciation and with constant 3.0x leverage. We regard Virgin's high speed product and TiVo "through-the-middle" video offering as its main backbone and are more encouraged by competitors' price increases than daunted by the imminent YouView launch, which will narrowly make the Olympic Games."
Wunderlich Securities maintained its Buy rating and $31 PT on Virgin Media, which closed yesterday at $24.98.
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