Deutsche Bank Adjusts Cablevision Estimates, Raises Price Target

In a report released this morning, Deutsche Bank said that Cablevision Systems Corporation

enjoys a unique cable footprint with dominant market share, leading network density / efficiency, attractive consumer dynamics, and the greatest relative SME opportunity. “Mgmt has fended off first DBS and then FiOS. Return of capital has ramped nicely,” Deutsche Bank writes. “This and sustaining higher financial leverage more than offset occasional surprising decisions by its controlling shareholders. 24% upside to target.” Deutsche Bank said that it has trimmed sub growth including factoring 20k losses in 4Q from the Fox retrans fight – ‘10E lowered 82k to 138k and ‘11E by 58k to 123k, adding, “Softer cable was offset by stronger programming results, leaving EBITDA essentially unchanged, up $5m to $2.623b for ‘10E (+8.1% yoy) and up $5m to $2.918bfor ‘11E (up 11.3% yoy).” Deutsche Bank has raised its price target from $30 to $35. Cablevision currently trades at $28.36.