Nomura Securities Maintains a 'Buy' on Cablevision (CVC); Reducing Estimates & PT

Nomura Securities maintains a 'Buy' on Cablevision (NYSE: CVC) price target lowered to $23.00.

Nomura analyst, Mike McCormack, said, "Our initial thesis that Cablevision’s valuation could gravitate to peers has softened. We have tweaked our below-consensus estimates, and now give essentially no credit for a near-term improvement in the NY market and adjusted ARPU estimates to remove a 2012 price increase. Our FY11E EPS goes from $0.99 to $0.93 and FY12E from $1.16 to $0.89. However, it is a bad time to throw in the towel. Longer term, we see continued opportunities in CVC shares with the shares trading at 6x 2012 P/FCF, a 30% discount to peers, and ~90% of 2012 free cash flow expected to be returned via share repurchases and dividends. Should EBITDA trends improve, the 4.5x leverage target could provide meaningful capital return opportunities."

For an analyst ratings summary and ratings history on Cablevision click here. For more ratings news on Cablevision click here.

Shares of Cablevision closed at $14.04 yesterday.

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