Cablevision Spikes on Upgrade, Time Warner Cable Jumps on Potential Buyout -- Telecom Winners & Losers

NEW YORK (TheStreet) -- Cablevision (CVC) surged by double-digits Wednesday, following an upgrade and price target hike by Pivotal Research Group analysts. Time Warner Cable (TWC) soared following reports that French cable company Altice ATC is lining up a bid for the U.S. cable company.

Cablevision spiked 18% to close at $24.69.

The cable company received a boost after Pivotal upgraded it to a buy from a hold, as well as increasing its price target to $31 from $18.

In the background of this upgrade, a sentiment is growing that further consolidation will be occurring in the industry, according to a Bloomberg report, which pointed to an agreement by Altice (ATCEY) to acquire a controlling stake in Suddenlink Communications. That merger may have a domino affect in the cable industry, according to the report.

Time Warner Cable soared 5.4% to end the session at $166.55.

Time Warner is reportedly expected to be re-approached with a buyout bid from Charter Communications (CHTR), which was initially rebuffed on its first attempt with an unsolicited bid. However, Altice is also reportedly preparing to launch a bid for Time Warner, according to a report in the Wall Street Journal.

Apparently, Time Warner isn't so bad off after its $45.2 billion merger with Comcast (CMCSA) was called off nearly a month ago as regulators' concerns about the deal increasingly make it more likely it would not go through. 

This article is commentary by an independent contributor. At the time of publication, the author held no positions in the stocks mentioned.

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