Zacks Investment Research downgraded shares of Time Warner Cable Inc. (TWC) from OUTPERFORM to NEUTRAL on March 11, 2014, with a target price of $147.00.
Time Warner Cable posted fourth quarter 2013 results, where both its top and bottom line outpaced the Zacks Consensus Estimate. Despite dividend increases and implementation of growth strategies, the company continues to lose huge video subscribers. As a result, Time Warner Cable has decided to sell its business to Comcast for $45.2 billion. Recently, the company acquired DukeNet which is expected to strengthen the Business Service segment of the former. However, stiff competition from cable and telecom players coupled with mounting programming expenses will continue to act as headwinds for Time Warner Cable. We, thus, downgrade our rating on Time Warner Cable from Outperform to Neutral. Meanwhile, the stock price of Time Warner Cable has soared 50% in the last one year and is presently trading at the high end of the 52-week price range.
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