UPDATE: JP Morgan Initiates Overweight, $43 on AMC Networks

JP Morgan initiates coverage on AMC Networks AMCX as growing cable networks make AMCX an attractive media story amid resiliency in adveritising. JPM says, “U.S. ad outlook is relatively stable with only modest contraction expected in 2012. We expect growth in the US ad market to contract roughly 100bp in 2012 to 3.5%. However, TV remains a favored media with advertisers and cable TV is expected to continue to outpace the overall ad market with mid-single-digit growth in 2012. Despite macro economic concerns, advertisers appear willing to commit to higher 2012 budgets and Upfront cancellations have not accelerated, giving us comfort in the outlook for cable advertising.” AMCX closed at $35 a share on Wednesday.