Cablevision Has Upside: Warburg

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UBS Warburg cable debt and equity analyst Aryeh Bourkoff raised his 12-month price target on Cablevision Systems Corp., citing progress in the federal investigation into the MSO's Rainbow Media Holdings Inc. programming division and an ability to refinance debt.

Bourkoff raised his price target on the stock to $32 from $28 — representing a 37% increase — and maintained his "Buy 2" rating, adding he believes the Rainbow accounting investigation is nearly complete. He also believes Cablevision is close to refinancing high-cost debt and initiating the planned spinoff of its Rainbow DBS unit.

"As a result of our belief that CVC will clear up a number of its overhangs over the next 12 months, CVC is one of our top picks for 2004," he wrote.