Bundle Powers Insight's Results


SunTrust Robinson Humphrey cable analyst Gary Farber initiated coverage of Insight Communications Co. last week with an "equal weight" rating and a $16 price target, citing the company's highly clustered systems and its advanced product offerings.

Insight has about 1.3 million customers, mostly in the Midwest. The company has also been successful in selling its bundle of interactive digital cable, high-speed data and telephony services. Despite some pressure from satellite competition and lower-than-average revenue and cash-flow growth last year (4 percent to 5 percent, compared to 12 percent for the rest of the industry), Farber wrote that he expects Insight to hit industry benchmarks in 2002 on the strength of its bundle and its highly upgraded systems.