VMED Enjoying Structural Advantage In Broadband Quality/Cost

Analysts at Goldman Sachs reiterate their "conviction buy" rating on Virgin Media Inc VMED. The target price for VMED has been raised from $26 to $28.10. Goldman Sachs mentions, “We continue to believe that VMED enjoys a structural advantage in broadband quality/cost, which combined with a much improved TV product offering/UI and increased marketing investment should allow sustained (albeit modest) growth in its core consumer cable business, despite increasing competitive pressure from BT. Clarity on target capital structure combined with a clear commitment to return excess cash to shareholders via accretive buybacks is a further positive.” “We expect VMED to enjoy strong earnings momentum relative to company compiled consensus expectations which anticipate a stalling of growth in 2011. Upcoming catalysts include the launch of the new Tivobased UI in 4Q, which we expect will positively differentiate VMED’s TV product vs. competitors after years of lagging the market,” the analysts add. More Analyst Ratings here