Matav Cable Systems Media (Nasdaq:MATV) won't achieve profits before 2003, predicts UBS Warburg.

Analyst Stephen Levey rated Matav a Hold and set its price target at $20, 25% above the market.

Levey believes that improved regulatory conditions could boost Matav's revenue in 2002, and help it reduce losses.

Satellite television company YES satellite TV (Hebrew site) is still luring away subscribers from Israel's three cable television companies. Although Matav is losing less than the other two CATVs, its overhead is running high.

Matav's current share price incorporates the company's fair value, Levey concluded.