Sell Off In CVC’s Share Price Unwarranted: Wunderlich

Analysts at Wunderlich Securities reiterate their "buy" rating on Cablevision Systems Corp CVC, while raising their estimates for the company. The target price for CVS is set to $33.50. According to Wunderlich Securities, “Cablevision stock sold off 5.6% yesterday, reportedly off CVC engaging in the Bresnan Communications auction process among six to ten likely bidders.” The analysts say, “Our FiOS competitive matrix suggests that share losses to FiOS are wildly overamped in CVC's stock price.” “Owner Providence Equity Partners has engaged Credit Suisse and UBS as its lead banks; they are reportedly committed to providing $1 billion in financing, certainly buttressing a high multiple. Comcast still owns about 30% of Bresnan, retained after selling the systems to Bresnan for $675 mm in 2003, but may divest. Bresnan may lose about $10 mm of programming cost benefits from the Comcast association, although much higher $30-$40 mm numbers have been bandied in the trades….Ascent was spun off from Discovery Holdings in 2008 and is very cash rich and headed by former TCI EVP and COO William Fitzgerald. Malone has 30% voting control of the company,” Wunderlich Securities adds. Wunderlich Securities has raised its EPS estimates for 2010 and 2011 from $1.47 to $1.54 and from $2.05 to $2.11, respectively. More Analyst Ratings here