Citigroup starts Time Warner Cable as Hold

Posted Apr 3rd 2007 10:22AM by Jon Ogg
Filed under: Before the Bell, Time Warner (TWX), AT and T (T), Verizon Communications (VZ), Analyst Initiations, Time Warner Cable (TWC)

Time Warner Cable (NYSE:TWC) was started today with a HOLD rating by Citigroup. The analyst report suggests there is little upside and little downside to current prices. The target price is $42.00, which is actually about a12% return. Simultaneously, the risk factor is set as Medium Risk.

Citigroup notes a premium valuation to peers already discounts EBITDA margin expansion. The good news is that Citigroup sees little downside risk from Verizon Communications' (NYSE:VZ) FiOS and AT&T (NYSE:T) as there is only a 3% overlap in their coverage footprints. The analyst also notes that TWC is "not expected" to acquire Cablevision Systems (NYSE:CVC) because of FiOS risks in NYC and New Jersey.

Jon Ogg is a partner in 24/7 Wall St., LLC; he does not own securities in the companies he covers.

Tags: analysts report, AnalystsReport, broadband, cable, cable television, CableTelevision, nasdaq, nyse