UPDATE: Nomura Initiates Coverage on Time Warner at Neutral, Establishing a $72.00 PT

In a report published Wednesday, Nomura analyst Anthony DiClemente initiated coverage on Time Warner, Inc. (NYSE TWX) with a Neutral rating, establishing a $72.00 price tartget. According to the report, as exemplified by its material multiple expansion in 2013E, it is believed it is now well understood by investors that the Turner networks—a key driver of TWX—are on sound, fundamental footing and will benefit from an acceleration in domestic affiliate rates. “However, because Time Warner's revenue mix is more heavily weighted towards more mature businesses—including Warner Brothers film as well as HBO—we believe TWX could realize slower-than-industry operating income growth over the next three years,” the report noted. TWX closed Tuesday at $65.27.