In a report released yesterday, Zachary Silver from B.Riley FBR maintained a Buy rating on Wideopenwest Inc (WOW), with a price target of $14. The company’s shares opened today at $7.91.
Silver noted:
“WideOpenWest (WOW–Buy, $14 PT) reported 4Q18 results that, excluding the impact from Hurricane Michael, were reasonably consistent with our and consensus estimates. More importantly, WOW issued guidance for MSD AEBITDA growth in 2019, close to Street expectations. WOW also reported another strong quarter of high-speed-data (HSD) subscriber net adds, which grew 7,100 (ex. hurricane), nearly doubling the consensus estimate. While we see expectations as still very low for this equity, and believe that the results should be interpreted as favorable against recent investor gloominess, we continue to see the selling shareholder overhang, as well as doubts around WOW’s ability to deleverage this year, weighing on the stock. However, with WOW trading at a paltry 6.4x 2019 AEBITDA, three turns below the peer group, we continue to view the valuation as compelling.”
According to TipRanks.com, Silver is a 3-star analyst with an average return of 4.5% and a 63.6% success rate. Silver covers the Technology sector, focusing on stocks such as Shenandoah Telecommunications Co, CSG Systems International, and United States Cellular.
The word on The Street in general, suggests a Moderate Buy analyst consensus rating for Wideopenwest Inc with a $14 average price target.
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Based on Wideopenwest Inc’s latest earnings release for the quarter ending December 31, the company reported a quarterly net profit of $16.3 million. In comparison, last year the company had a net profit of $84.2 million.
Based on the recent corporate insider activity of 41 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of WOW in relation to earlier this year.
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WideOpenWest, Inc. is a cable operator, which engages in the provision of internet, cable television, and voice over IP-based telephony services. Its products include high-speed data, video, and telephony. It offers internet and data, voice, cloud and recovery, TV and music. The company was founded in July 2012 and is headquartered in Englewood, CO.
