UPDATE: Nomura Raises PT to $39 on Virgin Media on Subscriber Growth, Valuation
Nomura reiterated its Buy rating on Virgin Media (NASDAQ: VMED) and raised its price target from $37 to $39.
Nomura noted, "Revenues and OCF came in broadly in line with our forecasts. The key takeaway above all was the strong subscriber growth with VMED adding 39.5k unique subs, its best ever quarterly performance and well ahead of consensus 11k forecast. Broadband growth was also impressive with 57k net adds, the best quarter since Q1-10. We have left our forecasts broadly unchanged with somewhat higher Cable revenues being offset by weaker mobile, but believe that the risk to our forecasts is almost entirely skewed to the upside. … Valuation is also well underpinned by ongoing share buybacks."
Virgin Media closed at $34.13 on Tuesday.
Latest Ratings for VMED
|Feb 2013||Evercore Partners||Downgrades||Overweight||Equal-Weight|
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