Wedbush Upgrades Time Warner (TWX) to Outperform; Expects the Deal to Go Through

Wedbush upgraded Time Warner (NYSE: TWX) from Neutral to Outperform with a price target of $105.00, saying while they don't love AT&T's (NYSE: T) strategy, they believe the deal will be approved.

Analyst James Dix commented, "TWX shares closed 19% below $107.50 deal on the table from T. This fat spread, from investors battered by recent busted deals, implies odds of deal approval well below 50%. While we share investor skepticism about T’s strategy, we focus here, rather, on the probability of regulatory approval. We see the probability in the 75% range, supporting our current PT, which offers 20%+ upside, an attractive reward/risk for shares with stand-alone value of ~$90 per share by the time of expected deal close (YE2017)."

For an analyst ratings summary and ratings history on Time Warner click here. For more ratings news on Time Warner click here.

Shares of Time Warner closed at $86.74 yesterday.

You May Also Be Interested In

• Kepler Cheuvreux Upgrades Koninklijke KPN NV (KPN:NA) (KKPNY) to Buy
• Barclays Upgrades Poste Italiane SpA (PST:IM) (PITAF) to Overweight
• Koninklijke Ahold Delhaize NV (AD:NA) (ADRNY) Placed on Negative Catalyst Watch at JPMorgan