Gold Found In Rainbow8/26/2001 8:00 PM Eastern
Salomon Smith Barney Inc. initiated coverage of Rainbow Media Group Inc. with an "outperform" rating and a price target of $31 per share, citing the company's strong content businesses. Rainbow — a tracking stock of Cablevision Systems Corp. — includes the non-New York programming assets of the MSO, including American Movie Classics, Bravo, the Independent Film Channel and WE: Women's Entertainment. In a research report, Salomon wrote that advertising sales at AMC and Bravo are growing at rates "substantially higher" than the rest of the market. Despite the good news, Rainbow fell by 65 cents on Aug. 21, to $24.90. The share price fell by $1.30 to $23.60 in afternoon trading Wednesday.