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.