UPDATE: Deutsche Bank Reiterates Buy Rating, Raises PT on Time Warner Cable
In a report published Wednesday, Deutsche Bank reiterated its Buy rating on Time Warner Cable (NYSE: TWC), and raised its price target from $92.00 to $123.00.
Deutsche Bank noted, “Reaffirm Buy. We believe TWC shares are inexpensive at 11.4x ‘13E FCF. Thoughts include: (1) we remain bullish on cable incl. telecom share gains & broadband pricing power > video share loss & programming price pressure, and moderating capital intensity; (2) TWC video sub losses could begin to moderate (innovation, maturing competition, household formation revives); (3) visibility on stable margins (4Q12 HSD modem price increase, Sprint cost savings ‘13/'14); and (4) a high return of capital ($3.3b ‘13E, 11% of equity cap).”
Time Warner Cable closed on Tuesday at $99.52.
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