UPDATE: Topeka Downgrades Time Warner On Withdrawal Of Fox Bid

Before Time Warner TWX posted its second quarter earnings Wednesday morning, Topeka Capital Markets downgraded the stock from Hold to Neutral and lowered the price target from $71 to $69.

The firm attributed the downgrade to the withdrawal of Twenty-First Century Fox's FOXA initial bid to buy Time Warner.

At the writing of the note, Time Warner's share price had fallen 9.9 percent from Tuesday's close. At that level, Topeka commented, "There is still an inefficient 'in-play' premium built into Time Warner shares, which in our view, needs to be unwound."