UPDATE: Wunderlich Raises PT on Virgin Media to $37 (VMED)

Wunderlich is out with its report today on Virgin Media VMED, raising its PT from $32 to $37. In a note to clients, Wunderlich writes, "We are increasing our price target on Buy-rated Virgin Media to $37 from $32; derived off our FTSE-linked valuation approach with a 6,000 Index assumption. Revisions in our forecast include allowance for a 3.0x net debt to OCF capital structure commencing in 2012 and an assumption that stock beta compresses to 1.10 from 1.22 presently. Virgin's concentrated institutional ownership amplifies the efficacy of a safe and sane 3.0x net debt OCF leverage envelope. We remain confident of Virgin's ability to use its advantaged network to gain share among high end U.K. consumers and the SME market even as the overall U.K. economy takes its austerity medicine ahead of global peers." Shares of VMED closed Thursday at $31.98, down 0.56% from Wednesday's close.