The firm set a price target of $78 for the media and entertainment company, up from its previous mark of $74.
BMO raised annual EPS estimates to $4.18 from $4.00 for fiscal 2014, and to $4.73 from $4.55 for fiscal 2015.
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The firm also adjusted annual CFPS (cash flow per share) estimates to to $3.97 from $4.48 for fiscal 2014, and to $5.30 from $5.13 for fiscal 2015.
BMO said it reiterated Time Warner's "market perform" rating because the company is cutting costs and buying back stock.
"We believe valuation accurately reflects the opportunities across Time Warner's businesses, and we expect ample share buybacks to continue to support the stock price," said BMO analyst Daniel Salmon.
Shares of Time Warner are down 1.01% to $77.22 in early morning trading.
Separately, TheStreet Ratings team rates TIME WARNER INC as a Buy with a ratings score of A. TheStreet Ratings Team has this to say about their recommendation:
"We rate TIME WARNER INC (TWX) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, notable return on equity, reasonable valuation levels and solid stock price performance. We feel these strengths outweigh the fact that the company shows weak operating cash flow."