UPDATE 1-JP Morgan starts Comcast, Time Warner Cable

Aug 26 (Reuters) - J.P. Morgan Securities began coverage of Comcast Corp (CMCSA.O) and Time Warner Cable Inc (TWC.N) with an "overweight" rating and said it sees more growth potential for cable providers compared with telecom companies.

Cable companies have been battling harder to win customers amid competition from satellite TV services and fledgling video services from phone companies AT&T Inc (T.N) and Verizon Communications (VZ.N).

"We favor the cable providers given higher relative growth of key financial and operational metrics as well as less exposure to the maturing and increasingly competitive wireless industry," the brokerage said in a note to clients.

JP Morgan said Comcast is well positioned for expansion of average revenue per user as the digital transition continues and higher speed data products gain popularity. It set a price target of $19 on Comcast stock.

JP Morgan said both Comcast and Time Warner Cable had significant upside for voice and data services, given their low penetration rates.

The brokerage also expects investors to benefit from Time Warner Cable's plan for delevering the balance sheet following the spin-off from Time Warner Inc (TWX.N). Time Warner Cable was separated from Time Warner Inc on March 12.

JP Morgan set a price target of $45 on shares of Time Warner Cable.

Shares of Comcast closed at $15.21 Tuesday on Nasdaq, while those of Time Warner Cable closed at $35.79 Tuesday on the New York Stock Exchange. (Reporting by Saqib Iqbal Ahmed in Bangalore; Editing by Anne Pallivathuckal)