Wunderlich: Time Warner Cable Worth $180/Share On 'Organic-Only' Basis

In a report published Friday, Wunderlich analysts maintained a Buy rating on

, while reducing the price target from $190 to $180. Time Warner Cable reported improved 1Q subscriber activity at +692K PSUs. The subscriber activity was "a moonshot relative to its condition a year ago, but with lower-than-expected pricing partially off lower on-boarding promotional pricing for new relationships," the analysts pointed out. The company guided to near flat 2015E OIBDA (vs. $8,229mm in 2014) with an increase to the $9.0bn vicinity in 2016. "We had anticipated Q1's higher expense revelation but were admittedly disappointed by pricing with 2015 sales now $175mm light of our prior estimates," the report by Wunderlich said. The analysts expect more bullish cable product roadmap sentiment around next week's INTX 2015 NCTA (National Cable Television Association) show in Chicago next week. Time Warner's Maxx initiative introduced all-digital content and the user experience is now closer to what one enjoys with the X1 platform introduced by

. Moreover, the company's Xbox One app now offers live streaming for approximately 300 channels. "We expect TWC to be fairly amenable to working with OTT providers while rationally preferring to retain the primary user interface (UI) and billing relationship," the analysts wrote. The next development on the OTT front could come from Apple CEO Tim Cook, stating that

may provide detail on its TV ambitions in June. The EPS estimate for 2015 has been reduced from $8.37 to $7.69, while the EPS estimate for 2016 has been raised from $9.20 to $9.31.