Morgan Stanley today lowered its rating of Time Warner (TWX) to Equal Weight from Overweight. In a note, analyst Benjamin Swinburne writes that “estimates are broadly in-line with consensus and valuation better reflects the share repurchase and dividend growth potential that had differentiated the opportunity in Time Warner from its peers.”
At its Warner Brothers film studio, Swinburne says that Time Warner “faces a post Harry Potter world” after 2011, and he thinks the segment will be a drag on company’s growth� for several years going forward.
Over the 12 months, shares of Time Warner are up 49% versus 43% for the S&P 500.
Today, TWX is down 13 cents, or 0.4%, to $32.64.
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