UPDATE: Sterne Agee Initiates Coverage on AMC Networks, Inc. with a Buy Rating on Low Multiple and Current Deleveraging

In a report published on Wednesday, Sterne Agee analyst Matt Cioppa initiated coverage on AMC Networks, Inc.

with a Buy Rating and a price target of $74.00, citing the company's multiple of 11x EBITDA as the lowest in the pure-play basic cable network industry and and the current deleveraging process as reasons for the rating. Regarding potential downside for AMC, Matt Cioppa emphasized, "The bear argument on AMCX shares is centered on two of the network's marquee shows, Mad Men and Breaking Bad, ending their runs. We don't find this argument convincing: with Mad Men coming back for the final season and two new shows launched between now and the end of 2014, the difference in original hours will hardly be dramatic enough to drive downside to our conservative estimate of 8% growth in advertising revenue. (For comparison, we expect this number to be 16% in 2013; it was 18% in 2012 and 15% in 2011.)" Shares of AMC are currently priced at $63.22, down .33 percent from their previous close of $63.43.