UPDATE: Goldman Sachs Reiterates Neutral Rating, Raises PT on Cablevision Systems

In a report published Wednesday, the Goldman Sachs Group reiterated its Neutral rating on Cablevision Systems Corporation CVC, and raised its price target from $13.00 to $15.00. Goldman Sachs noted, “2Q results highlighted the multiple layers of pressure Cablevision faces as it undergoes an elevated investment cycle this year. Revenue growth of just +0.5% continues to lag peers (who are in the low mid-single digits), negatively impacted by a lack of video rate hikes this year. Together with rising content costs, adjusted EBITDA margins were -260bp yoy, and we expect margins to trend lower in 2H12 as CVC seeks to relaunch its Optimum brand. Finally, capex is likely to remain elevated in 2H12 as the company continues network investments, driving FCF down over 50% this year. While CVC has started seeing modest improvements in PSU volumes, we expect incremental 2H12 margin pressure and higher capex to continue as an overhang on shares near-term.” Cablevision Systems Corporation closed on Tuesday at $15.83.