Deutsche Bank Sets TW Telecom Price Target at $26.00 (TWTC)

The analysts wrote, “We maintain Buy and increase our price target by $1 to $26 following 1Q results featuring beats to revenue and EBITDA. The upside was driven by voice as data earnings were a bit light due to seasonally slow bookings in 4Q. TWTC as well beat our estimate for levered FCF, driven by strong EBITDA and lower capex. During capex was light in 1Q, TWTC reiterated its guidance for capex to increase in future quarters. This is in-line with the pick-up in bookings activity in 1Q and supports our expectations for furthermore acceleration in revenue growth as these contract wins come on-line.”

The company last announced its quarterly results on Tuesday, May 1st. It reported $0.13 revenues per share for the previous quarter, beating the Thomson Reuters consensus estimate of $0.11 EPS by $0.02. The company’s quarterly revenue was up 7.9% on a year-over-year basis. Analysts expect that TW Telecom will post $0.14 EPS then quarter.

tw telecom inc. is a provider of managed network services, specializing in Ethernet and data networking, Internet access, local and long distance voice, virtual private network, voice over Internet protocol and network security services to enterprise organizations and communications services companies throughout the United States.