Deutsche Bank Raises Price Target on tw telecom Inc. (TWTC)

Deutsche Bank is out with a research report this morning, where it reiterates its Buy rating on tw telecom Inc. TWTC; it also raised its price target to $22.00, from $19.00. The DB analysts cited that company’s recent earnings report, which was better than expected; the company noted strong bookings and a stable churn rate, which directly contributed to the revenue beat. The analysts also increased their revenues and EPS estimates for FY 2010. As for valuation, they remarked, “We increased our PT to $22 from $19 based on a new targeted 2011 EBITDA multiple of 7.5x (prior 6.5x) and higher forecasts. Key risks include continued economic weakness, pot’l competition from new entrants and pot’l regulatory reform.”