UPDATE: Canaccord Genuity Downgrades Cablevision to Hold on Strategic Headwinds

Canaccord Genuity reduced its rating on Cablevision

from Buy to Hold and reduced its price target from $23 to $15. Canaccord Genuity noted, "We are downgrading CVC from Buy to HOLD because we believe the company is in a difficult strategic position as it approaches 2013. More specifically, given the massive service outages among its subscribers, we don't believe the company can raise rates in 1H13 without incurring material customer churn. Consequently, we expect 1H13 AOCF declines 1.5% y/y, down from our prior estimate of a 5% AOCF increase. Given the CON 1H13 estimates (including $1,696mm for 1Q13 revenue) appear to imply a 1Q13 rate increase, we expect Street estimates will continue to be reduced as the company reveals its plan for 2013." Cablevision closed at $14.02 on Monday.