Morgan Stanley Reiterates Underweight on Cablevision Systems

Morgan Stanley is out with its report today on Cablevision Systems CVC, reiterating Underweight. In a note to clients, Morgan Stanley writes, "We are reiterating our Underweight rating on CVC, setting our post-spin price target at $27 as valuation continues to appear full especially given our concerns over '11 cable revenue growth. We continue to like (1) CVC's buybacks and equity shrink, (2) CVC's shareholder-friendly initiative of divesting non-core assets, and (3) CVC's above peer debt leverage combined with strong equity shrink via buybacks. However, we believe these positives are fully reflected in CVC's premium multiple." Shares of CVC closed Friday at $25.91.