Tuesday, December 17, 2013

BITG Analyst: Time Warner Cable Should Hold Out for $160 Per Share (TWC)

Cable TV and Internet provider Time Warner Cable Inc (TWC) on Tuesday received some positive sentiment from an analyst at BITG Research.

The firm reiterated its “Buy” rating on TWC and lifted its price target from $80 to $160. Analyst Richard Greenfield feels the company shouldn’t be in a hurry to sell, given its internal performance is improving.

Greenfield commented, “While laying out all the potential acquisition scenarios spanning multiple companies and joint bids is far too complex, we believe the operational efficiencies and improved clustering of a TWC acquisition/breakup should warrant value of at least $160.” Both Charter Communications (CHTR) and Comcast (CMCA) are considered potential suitors for TWC, which is exploring a sale amid an expected upcoming era of consolidation for the cable television industry. Cable providers have been feeling the heat from Internet-based media services like Netflix, Hulu, and others, which offer consumers on-demand movies and TV shows for relatively low monthly fees.

Time Warner Cable shares were inactive in pre-market trading Tuesday. The stock has gained about 36% year-to-date.

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