Altice Usa Inc (ATUS) Received its Third Buy in a Row


After Barclays and RBC Capital gave Altice Usa Inc (NYSE: ATUS) a Buy rating last month, the company received another Buy, this time from Pivotal Research. Analyst Jeffrey Wlodarczak reiterated a Buy rating on Altice Usa Inc today and set a price target of $25. The company’s shares closed yesterday at $18.04.

Wlodarczak observed:

“We made a number of overall positive tweaks to our financial model, however a move to a YE’19 target from YE’18 was the primary driver of a $2 increase in our target price to $25. On the back of 3Q price hikes we forecast +3.5% 2H y/y revenue growth and +6% 2H EBITDA (enhanced by the elimination of one-off expenses that hit 1H + the elimination of management fees ($7.5M per quarter) post the June split from Altice NV). We also now assume Altice repurchases $200M in stock during the 2H vs. $0 previously. We maintained our $1B buyback in ’19 and $1.2B in ’20. Our new $25 target price implies 12X ’19 FCF vs. the current 8.5X respectively (*Altice will not be a material tax payer until ’20). Altice remains the levered way to play U.S.”

According to TipRanks.com, Wlodarczak is a 4-star analyst with an average return of 8.5% and a 61.4% success rate. Wlodarczak covers the Services sector, focusing on stocks such as Liberty Media Corporation Series A Liberty SiriusXM Common Stock, Charter Communications, and Sirius XM Holdings Inc.

The word on The Street in general, suggests a Strong Buy analyst consensus rating for Altice Usa Inc with a $23.63 average price target, which is a 31.0% upside from current levels. In a report issued on August 14, TD Securities also reiterated a Buy rating on the stock with a $23 price target.

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The company has a one-year high of $28.14 and a one-year low of $14.60. Currently, Altice Usa Inc has an average volume of 5.71M.

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Altice USA, Inc. engages in the provision of broadband, pay television, telephony services, proprietary content, and advertising services. Its brand includes Optimum, Suddenlink, Lightpath, AMS, News 12 Networks, and News 12 Varsity. It operates through the Cablevision and Cequel business segments.

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