UPDATE: Nomura Raises PT on Charter Communications on Raised Estimates, Lack of Upside

In a report published Monday, Nomura analyst Adam Ilkowitz reiterated a Neutral rating on

, and raised the price target from $95.00 to $120.00. In the report, Nomura noted, “We are raising our target price to $120 from $95, but believe the implied 8x 2014E EBITDA multiple indicates much of the opportunity is already priced in. We have raised our estimates for product penetration and ARPU, as well as the Bresnan acquisition, but are hard pressed to find further upside. Charter management has clearly turned around operations in terms of gross adds and perceived product quality, but we expect it will remain a story of more steady progress over the next several years. We expect Charter will remain in the 4-4.5x target leverage range through the end of 2014, and is likely to continue prioritizing debt reduction with excess free cash flow.” Charter Communications closed on Friday at $122.60.