NEW YORK (TheStreet) -- Shares of Time Warner (TWX)  were increasing in mid-afternoon trading on Tuesday as Wedbush raised its rating on the stock to "outperform" from "neutral."

The firm has a $105 price target on shares of the New York City-based media company, according to FactSet.

Wedbush analysts expect AT&T's (T) $85.4 billion purchase of Time Warner to receive regulatory approval. 

Investors appear to see a 50% chance of approval for the deal, but the firm believes there's a 75% chance of clearing antitrust officials, TheFly reports.  

Additionally, Time Warner CEO Jeff Bewkes said today that competitors should support the proposed mega-merger because it will spur competition, according to the Financial Times.

The companies would accelerate development of new digital products if the deal is authorized, Bewkes noted, the Times reports. 

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

Image placeholder title

TWX

data by

YCharts