Goldman Sachs reiterates its recommend list status on AOL Time Warner (AOL) shares, whose weak performance creates a compelling buying opportunity.
Analyst Richard Greenfield notes that AOL stock has significantly underperformed peers during the recent cyclical rally. He notes that despite slowing growth, the company remains one of the fastest growing media companies, benefiting from a diverse business mix (less than 25% ad exposure) that relies heavily on subscription-based businesses, cost cutting and recent film success. Greenfield believes that investor concern over slowing subscriber growth, management changes and Bertelsmann's put option are overdone. He maintains a $44 one-year target.