Citi Raises Its PT On TW Telecom To $22

According to Citi, TW Telecom TWTC showed better overall sequential revenue growth of 1.4% vs. Citi's estimate and consensus of ~1.1% with better carrier segment performance and similar sequential enterprise revenue growth of ~1.5% vs. 3Q. Norm. OIBDA of $119.4 million was ahead of Citi's forecast of $118.7 million and consensus of $117.5 million, while normalized EPS of $0.11 was in-line with its forecast and consensus on higher non-cash interest expense. While Citi looks for more details on the conference call regarding the bookings trajectory during 2010 & implications for ‘11, it remains encouraged for accelerating revenue growth during 2011 based on the prospects for stronger salesforce productivity, better spending from its existing customers, declining revenue churn, & declining book-to-bill ratios. Citi has a Buy rating and $22 PT on TWTC TWTC is trading lower at $18.05