Zacks Investment Research downgraded shares of Time Warner Cable Inc. (TWC) from NEUTRAL to UNDERPERFORM on February 19, 2013, with a target price of $79.00.
We downgrade our recommendation on Time Warner Cable to Underperform backed by the company's weak financial guidance for 2013. The company is losing video subscribers without any interruption since 2009. We do not know when this trend will ultimately reverse. Growing competitive threats from telecom, satellite TV and online video streaming operators along with soaring programming costs are taking heavy toll on the company's finances. Time Warner Cable, a pure-play TV and Internet company reported mixed financial results for the fourth quarter of 2012. Unlike Comcast, it is suffering significantly from lack of any effective media asset. Consequently, the company is highly dependent on the TV content providers, who are rapidly increasing their programming fees. Similarly, unlike DIRECTV, the company is lacking geographical diversification as it operates only within the U.S.
Get all Zacks Research Reports and be alerted to fast-breaking buy and sell opportunities every trading day.
To get a free copy of the research report on Time Warner Cable Inc. (TWC),
click here.
For more information about research offerings from Zacks Investment Research, visit
Zacks.com .
Be the first to comment