We maintain our Buy rating and the same valuation target for tw telecom (TWTC - Analyst Report), a leading provider of managed voice & data networking solutions. TWTC continues to generate sustaining revenue from large business enterprises primarily through sales of Ethernet and IP-VPN services.
This has reduced the company's dependence on telecom carrier customers. Although the balance sheet remains considerably leveraged, we do not expect any immediate liquidity crisis since no significant debt will mature before 2013. Growth prospects for TWTC remain firm as a result of growing demand for bandwidth to implement converged IP-based networks.
The stock is currently trading near 50% discount to its 52-week high range. We believe that this weakness in share pricing may be due to overall equity market conditions which may now create a favorable investment opportunity.
tw telecom (TWTC) : FULL ANALYST REPORT
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| Market Summary | Feb 10, 2010 01:34 am ET |

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