Jefferies Lowers Price Target on Cablevision (CVC)
Jefferies reported on Wednesday that it has lowered its price target on cable television operator, Cablevision Systems Corporation(CVC).
The firm, which currently has a “Hold” rating on CVC, has reduced the company’s price target due to weak fourth quarter results from $17 to $16. This price target suggests a 13% increase from the stock’s current price of $13.91.
An analyst from the firm commented, “CVC noted that content costs climbed 12% YoY in 2012 and it expects a similar increase this year. Given the level of competition in CVC’s markets from FiOS and the recent broadband price hike, we believe the company has few levers to pull to offset the margin pressure.”
Looking ahead, the firm sees first quarter earnings of 16 cents per share. Analysts have raised their EPS estimate for FY2013 from 79 cents per share to $2.31 per share.
Cablevision shares were mostly flat during Wednesday morning trading. The stock has has been mostly flat in the past year.
The Bottom Line
Shares of Cablevision Systems Corporation(CVC) have a 4.29% yield, based on Wednesday morning’s price of $13.99.
Cablevision Systems Corporation(CVC) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.1 out of 5 stars.
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