Needham & Co. Stays Bullish on Time Warner Cable Ahead of Earnings (TWC)
Cable TV and Internet provider Time Warner Cable Inc. ( TWC ) on Wednesday caught some continued bullish commentary from analysts at Needham & Co.
The firm reiterated its "Buy" rating and $95 price target, which suggests a 16% upside to the stock's Tuesday closing price of $81.85.
A Needham analyst commented, "We are revising our estimates to account for TWC's acquisition of Insight Communications, which closed on 2/29/12, as follows: We raise our 2Q12 revenue to $5.382B (up 9% y/y and 2% higher than our previous estimates) and we maintain our Operating EPS at $1.38 (up 17% y/y)…For FY12, we raise our revenue estimate to $21.36B (up 9% y/y and 2% higher than our previous estimates), and we raise our Operating EPS by 0.7% to $5.64 (up 21% y/y and 1% higher than our previous estimates)…For FY13, we raise our revenue estimate to $22.182B (up 4% y/y and 1% higher than our previous estimates) and we maintain our Operating EPS at $7.10 (up 26% y/y)."
Time Warner Cable shares were mostly flat in premarket trading Wednesday.
The Bottom Line
Shares of Time Warner Cable ( TWC ) have a 2.74% dividend yield, based on last night's closing stock price of $81.85. The stock has technical support in the $74-$75 price area. If the shares can firm up, we see overhead resistance around the $85-$86 price levels.
Time Warner Cable Inc. ( TWC ) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars.