JP Morgan reported on Thursday that they have upgraded data provider, Time Warner Cable Inc(TWC) on Thursday.
The firm reported that they have upgraded the company from “Neutral” to an “Overweight,” and increased its price target from $100 to $110. This price target suggests 18.8% increase over the stock’s current price of $89.29.
An analyst noted, “TWC is the fourth largest provider of video and third largest in broadband data in the US, and in the next year we believe it can continue to grow broadband share while slowing its video share losses. The company offers an 8.4% fully taxed FCF yield, and we expect it to return 13% of today’s market cap in dividends and stock repurchases in 2013. While TWC’s video business remains challenged vs its closest peer Comcast, the potential for that business to recover over time offers significant upside to shares beyond our target.”
Time Warner Cable shares were mostly flat during premarket trading Thursday. The stock is up 40.46% YTD.
The Bottom Line
Shares of Time Warner Cable (TWC) have a 2.51% dividend yield, based on last night’s closing stock price of $89.29. The stock has technical support in the $83-$85 price area. If the shares can firm up, we see overhead resistance around the $95-$96 price levels.
Time Warner Cable Inc(TWC)is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars.