Albert Fried's Tullo Starts 'Content Kingdom' Time Warner At Outperform; Analyst Likes Value Vs. FANG

• Time Warner Inc (NYSE: TWX) shares have declined 16.21 percent over the past one year, to a low of $63.41 on December 21.
• Rich Tullo of Albert Fried & Company has initiated coverage of the company with an Overweight rating and price target of $90.
• Tullo believes that the stock is inexpensive, both on a relative and an absolute basis, with both Turner and Warner Brothers poised to beat consensus expectations.

Analyst Rich Tullo believes that “Warner’s Movie Catalogue is a hidden tangible and intangible asset on the Time Warner Balance sheet,” and stated that he liked HBO as well.

Calling Time Warner a “Content Kingdom,” Tullo expressed optimism regarding the up-front TV selling and summer movie seasons, along with the company’s prospects in scatter market TV advertising, and HBO, which Albert Fried’s due diligence suggest offers “the highest quality TV content globally.”

While FANG shares have declined over the past year, Time Warner’s stock has been flat, as compared to the 3 percent decline in the S&P 500 index, according to the Albert Fried report.

“Owing to a number of our peers touting the end of Big Media even as cable sub declines were moderating and as Mobile growth was slowing TWX shares declined. To be blunt this market feels like a redux of 2001 and downside risk is apparent,” the report added.

However, Tullo expressed optimism regarding the stock, given that Time Warner seems to be entering a robust content cycle, which would benefit the stock if the market turns.