Commercial services revenue prompts Miller Tabak to raise estimates for Time Warner Cable

While Miller Tabak says it expects Time Warner Cable (NYSE: TWC) to lose more video customers this year than it previously expected, the firm upgraded its estimate on the cable MSO Monday because of its revenue projection from commercial services.

The firm raised its long-term price target on Time Warner Cable to $100 per share, noting that the MSO expects to see revenue from commercial services increase by 25 percent to 25 percent this year. Analyst David Joyce increased his estimate for total revenue at Time Warner Cable by 8.5 percent to $21.342 billion.

Joyce said he expects the MSO to lose 381,000 video subscribers in 2012, which is worse than his prior estimate of 241,000 subscriber losses. But he also expects Time Warner to pick up 423,000 high-speed Internet subscribers this year, compared to previous estimates of 423,000. The MSO should add 119,000 residential voice customers this year, compared to its previous estimate of 79,000 voice subscriber additions, he added.

Special Report: Sizing up the cable industry in Q4 2011

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