Media group Time Warner (NYSE:TWX) shares were higher on Friday as brokers at Wedbush raised their price target on growing optimism that a deal to merge with telecoms behemoth AT&T will not get blocked by US President Donald Trump.
Wedbush raised the target price to $107.50 from $105.00 and maintained the recommendation as Outperform on the CNN broadcaster.
Last month, markets turned anxious that Time Warner shares would lose one-third of their value if Trump was to block the merger which during the election campaign last year he accused of being a “bad deal”.
“We understand that arbs have replaced some of the core media investor base, as views on the path to a deal continue to become more important. The appointment of Ajit Pai as Chairman of the FCC decreases the likelihood of deal failure at the hands of the FCC, which deal skeptics have flagged as one of the bigger regulatory risks,” said Wedbush in a note.
Time Warner shares were up 0.3% at $95.93 on Friday. Meanwhile, AT&T shares were also up 0.3% at $41.29.
“We believe VE's full benefits are yet to fully contribute to Visa Inc's revenue/adj. EPS. Expect Visa's multiple discount to MA to gradually close,” Wedbush said.
Finally, car making giant Ford Motor Co (NYSE:F) was upgraded to "overweight" from "equalweight" by brokers at Barclays, which said Ford is better positioned than its competitors to withstand a potential border tax with Mexico.
Ford shares were 2.1% higher at $12.54.