NEW YORK (TheStreet) -- Time Warner (TWC) shares are flat at $152.88 on Wednesday after having coverage initiated with a "buy" rating and $178 price target by analysts at Canaccord Genuity (CCORF) .
The firm's price target represents a 16.4% upside from the stock's current price.
"Our price target of $178 is based on our $62 target for Comcast (post the TWC acquisition), applying the deal terms of 2.875 Comcast shares received for every Time Warner Cable share," said the firm.
TheStreet Ratings team rates TIME WARNER CABLE INC as a Buy with a ratings score of B+. TheStreet Ratings Team has this to say about their recommendation:
"We rate TIME WARNER CABLE INC (TWC) a BUY. This is driven by several positive factors, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its solid stock price performance, revenue growth, reasonable valuation levels, good cash flow from operations and growth in earnings per share. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- Investors have apparently begun to recognize positive factors similar to those we have mentioned in this report, including earnings growth. This has helped drive up the company's shares by a sharp 34.09% over the past year, a rise that has exceeded that of the S&P 500 Index. Regarding the stock's future course, although almost any stock can fall in a broad market decline, TWC should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
- Despite its growing revenue, the company underperformed as compared with the industry average of 12.3%. Since the same quarter one year prior, revenues slightly increased by 3.2%. Growth in the company's revenue appears to have helped boost the earnings per share.
- Net operating cash flow has slightly increased to $1,695.00 million or 9.28% when compared to the same quarter last year. Despite an increase in cash flow, TIME WARNER CABLE INC's average is still marginally south of the industry average growth rate of 14.05%.
- TIME WARNER CABLE INC has improved earnings per share by 7.3% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, TIME WARNER CABLE INC reported lower earnings of $6.71 versus $6.91 in the prior year. This year, the market expects an improvement in earnings ($7.74 versus $6.71).
- You can view the full analysis from the report here: TWC Ratings Report
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