Barclays Reiterates an 'Overweight' on Cablevision (CVC); Post-Spin Mispricing Creates Buying Opportunity
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Price: $34.87 --0%
Rating Summary:
7 Buy, 18 Hold, 3 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 6 | New: 26
Rating Summary:
7 Buy, 18 Hold, 3 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 6 | New: 26
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Barclays reiterates an 'Overweight' on Cablevision (NYSE: CVC), PT $31.
Barclays analyst says, "We find core CVC shares very attractive at 8.7x 2012E FCF; as a pure play we believe CVC offers both continued execution and aggressive capital returns (20-35% of current market cap in next 18 months). We believe that, post-spin, the market has mispriced the two pieces of CVC (CVC core and AMC Netowrks (Nasdaq: AMCX), rated UW by our colleague Anthony DiClemente), assigning insufficient value to the core CVC stub, where shares trade at 8.7x 2012E FCF. Our $31 price target (based on 10.5x 2012E FCF) doesn't change, but target is now for post-spin CVC standalone; comparable pre-spin valuation (including $32 target AMCX valuation) would be ~$38/share."
"M&A Risk Is Moderate, in Our View - Expect Management to Remain Focused on Cable, Disciplined in Deals. We recognize that M&A remains a risk, and that CVC's acquisition history is checkered. We believe, however, that the company has become fundamentally more disciplined in the past two years, and view the risk of acquisitions either outside of the company's core cable business or of cable businesses at unattractive multiples to be modest."
For more ratings news on Cablevision click here and for the rating history of Cablevision click here.
Shares of Cablevision closed at $25.96 yesterday.
Barclays analyst says, "We find core CVC shares very attractive at 8.7x 2012E FCF; as a pure play we believe CVC offers both continued execution and aggressive capital returns (20-35% of current market cap in next 18 months). We believe that, post-spin, the market has mispriced the two pieces of CVC (CVC core and AMC Netowrks (Nasdaq: AMCX), rated UW by our colleague Anthony DiClemente), assigning insufficient value to the core CVC stub, where shares trade at 8.7x 2012E FCF. Our $31 price target (based on 10.5x 2012E FCF) doesn't change, but target is now for post-spin CVC standalone; comparable pre-spin valuation (including $32 target AMCX valuation) would be ~$38/share."
"M&A Risk Is Moderate, in Our View - Expect Management to Remain Focused on Cable, Disciplined in Deals. We recognize that M&A remains a risk, and that CVC's acquisition history is checkered. We believe, however, that the company has become fundamentally more disciplined in the past two years, and view the risk of acquisitions either outside of the company's core cable business or of cable businesses at unattractive multiples to be modest."
For more ratings news on Cablevision click here and for the rating history of Cablevision click here.
Shares of Cablevision closed at $25.96 yesterday.
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