Virgin Media Inc. (VMED) Update

Analysts at Wunderlich Securities have released an update on Virgin Media Inc. (NASDAQ: VMED).

The analysts have a $24 price target for Virgin Media. They estimate Virgin's 2010 estimated free cash flow yield at 12.4%, increasing to 17% in 2011. The proceeds from the pound 1.5 billion in Senior Secured Notes due 2018 are being used to reduce senior credit tranches and there are no significant maturities until pound 1.374 billion in September 2012 and pound 300 million in March 2013. The UK media regulator is likely to mandate up to 30% reductions in BSkyB's wholesale sports channel pricing to Virgin Media at the end of March. This is likely to be passed on to the consumer. Analysts at Wunderlich have a Buy rating for Virgin Media.