Soleil Securities media analyst Laura Martin started coverage of Time Warner Inc. with a "buy" rating and a $21 per share 12-month target price.
Martin was impressed by Time Warner's market position — its properties are No. 1 or No. 2 in their respective industries — its portfolio mix of content and distribution and its improving asset efficiency (cash flow has been going up and expenses are down).
While the media giant's America Online Internet subsidiary has been a drag on results — Martin wrote in her report that stabilizing the AOL unit is among Time Warner's biggest challenges — other units like Time Warner Cable, its cable networks and its publishing houses should more than take up the slack.