Citigroup Reiterates Buy, $21 PT on Cablevision

In a published note, Citigroup maintains its Buy rating and $21 price target on Cablevision

as it adds the stock to its Top Picks to reflect undue pressure on market valuation despite a string of executive departures. Citigroup says, "If sold, past transactions suggests Cablevision apt to fetch between 6.5x and 7.5x pre-synergy EBITDA. Based on $300 million in annual synergies ($150 million in programming, $100 million in corporate overhead and $50 million in executive compensation), post-synergy EV-EBITDA falls to 5.6x to 6.4x. This equates to 30% to 95% upside to the equity." CVC closed at $12.75 per share on Friday