Wedbush Maintains Neutral On Time Warner (TWX)

Wedbush has a Neutral rating and a $37 price target on shares of Time Warner TWX, as it discusses HBO To Go. In a note to clients, Wedbush writes, "...on 5/2 HBO GO's streaming service will become available on mobile devices to ~80% of HBO's U.S. sub base at no extra charge — we attended a meeting with HBO management to discuss the service and strategy. The only MSO holdouts of note look to be Time Warner Cable and Cablevision, even though HBO GO is being offered free to its affiliate partners typically through 5-7 year agreements (either separate or as an overlay)." Wedbusg goes on to say, "Our 12-month price target of $37 is roughly the median of our DCF analysis, applying a target P/E of ~14x and sum-of-the-parts. Risks to our PT and investment thesis include: variance in growth of affiliate and/or subscription fees or advertising; cable TV network ratings; major box office hits or misses; programming opex; TV production growth; and valuation, legal, tech, M&A or liquidity trends." Shares of TWX are up 17 cents to $36.25, a gain of 0.5%.