(Recasts; adds analyst comments)
Oct 28 (Reuters) - The "utility-like" nature of
subscription services offered by companies in the cable and
satellite TV sector will help them prove resilient in a
weakening economy, making them a relatively safe haven for
investors, according to an analyst at Credit Suisse.
But analyst S. Wang expects companies in the entertainment
sector to trade in line the broader market in the near term.
Wang sees substantial upside potential for these companies
on a multiyear basis as the economic backdrop improves, but
does not view current low valuations as a catalyst for rise in
shares in the short term.
Wang started coverage of the entertainment sector with a
"market weight" rating, but set a "overweight" rating on the
cable and satellite TV sector.
Among companies in the cable and satellite TV sector,
Comcast (CMCSA.O) was rated "outperform," while Time Warner
Cable (TWC.N) got a "neutral" rating as the analyst believes
the latter faces greater technical risks and balance sheet
constraints.
The analyst was cautious on companies in the Internet
sector, which was started with a "market weight" rating,
reflecting a risk of further earnings downgrades in the near
term.
The following table lists the rating and price target
Credit Suisse assigned to companies in the three sectors:
Company RIC Rating Price target (in $)
Amazon.com Inc (AMZN.O) Neutral 60.00 Comcast Corp
(CMCSA.O) Outperform 16.00 DISH Network Corp
(DISH.O) Neutral 18.00 EBay Inc (EBAY.O)
Neutral 19.00 Google Inc (GOOG.O) Outperform
400.00 News Corp NWSa.N Neutral 11.00 Time
Warner Cable (TWC.N) Neutral 22.00 Time Warner Inc
(TWX.N) Neutral 10.50 Viacom Inc (VIAb.N)
Neutral 21.00 Verizon Comm. (VZ.N) Neutral
40.00 Walt Disney Co (DIS.N) Outperform 27.00 Yahoo
Inc (YHOO.O) Neutral 14.00
(Reporting by Sandhya Menon in Bangalore; Editing by Pratish
Narayanan)
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