Nomura Securities Maintains a 'Buy' on Cablevision (CVC); Ahead of the Rainbow Spin

Nomura Securities maintains a 'Buy' on Cablevision (NYSE: CVC), raises PT by $1 to $41.

Nomura analyst, Mike McCormack, said, "Ahead of the Rainbow spin, we think investors should revisit the CVC story and what are likely low expectations after a rocky quarter. We think the spin presents a value opportunity through new affiliate agreements, and with a management team on track, we estimate it should return ~70% of pro forma cash flow to shareholders, to change the way investors view the discount assigned to CVC shares. In our view CVC shares trade at a discount to pure cable peers despite a better growth profile and a clear path to an opportunity for further changes to the capital structure...adjusting FY11 EPS est to $2.16 from $2.21 and FY12 EPS est to $2.97 from $2.89."

For more ratings news on Cablevision click here and for the rating history of Coverage on Cablevision click here.

Shares of Cablevision closed at $34.33 yesterday.

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