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Citigroup Upgrades TW Telecom to Buy (TWTC)

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Citigroup is out with a research report this morning, where it upgrades shares of TW Telecom (NASDAQ: TWTC) to Buy/High Risk, from Hold/Speculative; it has a $21.00 price target on the stock.

The Citi analysts said that their upgrade was based on the following:

1) “Prospects for seq. revenue growth to accelerate beginning in 1H/11
2) Upside to consensus FY11 OIBDA as the business retains favorable operating leverage
3) Balance sheet flexibility should improve shareholder returns over time.”

The analysts believe the Telco carriers that serve the enterprise have room for stronger business revenue growth over the next 12-24 months, as the backdrop for employment should improve & customer spending should favor the consumption of IP-based services with some resources shifting towards the Cloud.

Posted-In: CitigroupAnalyst Color Upgrades Price Target Analyst Ratings

 

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