SAN FRANCISCO (AP) ? Cablevision Systems Corp.’s stock rose Wednesday after a Barclays Capital analyst said that issues confronting the cable TV distributor are more than accounted for in the company’s stock price, making it a good buy.
THE SPARK: In a client note, Barclays analyst James Ratcliffe said that challenges including competition from Verizon Wireless and damage from hurricane Irene are already incorporated into the share price, Ratcliffe said,
Ratcliffe said Cablevision’s stock has underperformed since the AMC spinoff June 30. The company’s shares have dropped 54 percent since then.
THE ANALYSIS: Cablevision’s “strong” management and “very aggressive” 3.6 percent dividend yield are advantages, Ratcliffe wrote.
“We view the risk of non-strategic M&A (historically a concern) as low given the company’s actions over the past 18 months to spin off non-cable assets,” he said.
The analyst kept his “Overweight” rating and $31 price target for the stock.
SHARE ACTION: Shares of Cablevision, based in Bethpage, N.Y., rose $1.06, or 6.4 percent, to $17.73 in afternoon trading. It’s still near its 52-week low of $15.40 hit earlier this month.