UPDATE: Deutsche Bank Downgrades Time Warner Cable to Hold, Lowers PT
In a report published Friday, Deutsche Bank downgraded its rating on Time Warner Cable (NYSE: TWC) from Buy to Hold, and lowered its price target from $123.00 to $99.00.
Deutsche Bank noted, “TWC's 2013 outlook is challenged by flatish customer levels and heavy programming cost increases (10%). While valuation looks reasonable (12x ‘13E FCF) and return of capital remains strong, and we see today's stock drop as overdone, we expect investors will prefer the faster growing pay TV companies until clear evidence emerges that operating momentum is reaccelerating, and therefore do not see the upside to return to over $99/shr near-term. Therefore we think a Hold rating is appropriate.”
Time Warner Cable closed on Thursday at $89.34.
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