UPDATE: Goldman Sachs Downgrades Cablevision Systems to Sell on Added Cost Pressures

Goldman Sachs reduced its rating on Cablevision Systems

from Neutral to Sell and lowered its price target from $15 to $11. Goldman Sachs said, "We downgrade CVC to Sell from Neutral, and see over 20% downside risk to our new $11, 12-month price target (vs. 9% average upside potential for peers). We believe the current investment cycle runs through next year and long-term capital intensity will not return to prior levels. In addition, CVC has industry-leading product penetration, but faces the most intense competition. Verizon is the largest threat, and while the company's FiOS adds have disappointed for the past several quarters, current promotions have returned to prior levels. We believe Verizon returns to 150K+ adds per quarter pacing exiting 4Q12, most directly impacting CVC." Cablevision Systems closed at $13.65 on Wednesday.