Recent News Should Keep Shares Of Time Inc Range-Bound Near Term

Wells Fargo expects shares of Time Inc TIME to be rangebound amid takeover rumors swirling around the company linking it to Meredith Corporation MDP and Hearst.

The News

Analyst Eric Katz is not comfortable with the underlying fundamentals, but he also not ruling out the possibility of a deal, thus putting a potential floor under the current $18-ish stock price.

“Until a deal does or doesn't happen, we view TIME as sort of stuck—hence we maintain our Market Perform,” Katz wrote in a note.

Katz’s analysis shows a Meredith deal creates a combined company with revenue of $4.8 billion and EBITDA of $1.0 billion. Meanwhile, the analyst has wondered over Hearst buying Time given the former is known for its disciplined buyer.

Katz has a Market Perform rating has a valuation range of $13–$15. At last check, shares of Time were down 0.28 percent at $17.70.