"Our rating balances our standalone outlook, under which the shares look stretched, with the potential for M&A, under which the stock could see further upside," according to the analyst note.
Earlier this week, Time Warner Cable (TWC) and Charter Communications (CHTR) struck a deal. However, Cablevision's investors apparently feel there is still a chance for their portfolio company to be snapped up, Barron's reported.
"Although CVC wasn't part of today's announcement, a combination could still make sense at a later time, enabling CHTR to consolidate the greater NYC market," R.W. Baird analysts said, according to Barron's.
"We believe CVC makes more sense with TWC, and would view a separate Altice transaction as less likely," the research firm added.
Shares of Cablevision Systems are falling by 1.42% to $24.93 in mid-morning trading on Friday.
Separately, TheStreet Ratings team rates CABLEVISION SYS CORP as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:
"We rate CABLEVISION SYS CORP (CVC) a HOLD. The primary factors that have impacted our rating are mixed, some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its solid stock price performance, revenue growth and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, weak operating cash flow and feeble growth in the company's earnings per share."