UPDATE: Nomura Raises PT on Time Warner Cable Following 2Q13 Results

In a report published Monday, Nomura analyst Adam Ilkowitz reiterated a Buy rating on Time Warner Cable (NYSE: TWC), and raised the price target from $100.00 to $125.00.

In the report, Nomura noted, “Results in 2Q13 continue to reflect the revamped strategy undertaken since the beginning of the year: better profitability at the cost of customer gross additions. We believe the better-than-expected Adj. EBITDA performance is encouraging, but an improvement in subscriber metrics and revenue will take until 2014 to prove out. We are raising our target price to $125 based on our DCF analysis, equivalent to 7x 2014E EBITDA. While shares have been influenced by the consolidation theme, we remain positive on the shares due to steady EBITDA growth and consistent shareholder returns. We expect buybacks and dividends will represent 10% of TWC's market cap in 2013 and 2014, with the potential for more. Expensive M&A could derail this thesis, though we believe the management team will remain financially disciplined.”

Time Warner Cable closed on Friday at $109.94.