UPDATE: Wunderlich Securities Reiterates Buy Rating, Lowers PT on Cablevision Systems Corporation
In a report published Friday, Wunderlich Securities reiterated its Buy rating on Cablevision Systems Corporation (NYSE: CVC), but lowered its price target from $25.00 to $20.00.
Wunderlich Securities noted, “We are lowering our price target on Buy-rated Cablevision Systems (CVC) from $25 to $20 off i) a reduction in 2013E AOCF to $1.966mm from $2,189mm and ii) a lower 1400 S&P 500 bogey for WSI's market linked valuation. The 2013 estimate reduction is largely off revised 2013 quarterly model price hike assumptions off the Sandy dislocation and FiOS competition across 41% of Optimum East homes. We also allow for $17mm in 2012 FQ4E price rebates from Hurricane Sandy and a still protean $32mm in costs. Given its high density affluent footprint, CVC remains uniquely advantaged for game changing service enhancements like Wi-Fi but has to achieve some concomitant pricing. Wildcards are a Bresnan sale and an Optimum East M&A value floor.”
Cablevision Systems Corporation closed on Wednesday at $14.06.
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Tags: Wunderlich Securities