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NEW YORK (TheStreet) -- Shares of Time Warner (TWX)  were gaining on heavy trading volume early-afternoon Wednesday as Barclays upped its rating on the stock to "overweight" from "equal weight."

The firm also hiked its price target to $95 from $74 on shares of the New York City-based media company. 

Critics appear to have assigned a low probability of success to the proposed $85.4 billion mega-merger between AT&T (T) and Time Warner, Barclays said. Concerns center around the regulatory review that lies ahead, the firm added. 

"In our view, while the proposed deal will go through an extensive review, we believe both companies will try hard to incorporate conditions similar to the Comcast (CMCSA)-NBCUniversal deal, not just around content availability for competitors, but also around access to the T network for edge providers," Barclays said in an analyst note. 

There are multiple ways that AT&T can soften regulatory concerns, such as through asset sales, the firm noted.

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Even if the deal doesn't go through, Barclays believes Time Warner stock could be at the pre-deal price or even higher. 

More than 8.66 million of the Time Warner's shares changed hands so far today vs. its average 30-day volume of 7.55 million shares per day.

Separately, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author. 

The team rates Time Warner as a Buy with a ratings score of B. The company's strengths can be seen in multiple areas, such as its solid stock price performance, notable return on equity, reasonable valuation levels, good cash flow from operations and growth in earnings per share. The team feels its strengths outweigh the fact that the company has had sub par growth in net income.

You can view the full analysis from the report here: TWX

TWX data by YCharts

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