Canaccord Genuity Reiterates Hold Rating, $24 PT on TW Telecom

In a report published Wednesday, Canaccord Genuity reiterated its Hold rating and $24.00 price target on TW Telecom

. Canaccord Genuity noted, “We maintain our HOLD rating and $24 price target on the shares of tw telecom following its Q4/12 report and earnings conference call that outlined some of the new product lines and growth initiatives. Although the incremental spending from these new efforts will likely dampen the margin profile in the near term, we believe these investments are necessary as TWTC attempts to target new market opportunities and to re-accelerate its growth rates. Even so, valued at 8.5x 2014E EBITDA, the shares are likely fairly valued for a business with mid-single-digit top-line growth and a flat margin profile.” TW Telecom closed on Tuesday at $26.95.