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Pivotal Research analyst Jeffrey Wlodarczak maintained a Buy rating on Altice Usa Inc (NYSE: ATUS) yesterday and set a price target of $23. The company’s shares closed yesterday at $16.83, close to its 52-week low of $16.61.
Wlodarczak observed:
“We updated our estimates in front of 1Q results, went more conservative on our PayTV subscriber/Pay TV ARPU forecasts (partly due in 1Q to the Starz dispute), better modeled the revenue progression for the year (weighting more toward the back half of ’18 on timing of price hikes) and reduced the terminal EBITDA multiple in our DCF from 9X to 8.5X. The combo drove a $5 reduction in our YE’2018 target price to $23. Cable stocks in the U.S. have traded horrifically YTD as a seeming perfect storm of negative noise has enveloped the sector the vast majority of which we view as laughably overdone. Adding to this the high yield market has weakened adding to pressure on the more levered names (despite well-termed out debt and material free cash flows in the case of Altice). Also recall the upcoming spin from parent Altice NV creates short term issues for ATUS stock that should clear up post the spin.”
According to TipRanks.com, Wlodarczak is a 4-star analyst with an average return of 5.8% and a 52.2% success rate. Wlodarczak covers the Services sector, focusing on stocks such as Liberty Media Corporation Series A Liberty SiriusXM Common Stock, Charter Communications, and Liberty LiLAC Group.
Altice Usa Inc has an analyst consensus of Strong Buy, with a price target consensus of $26.50.
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The company has a one-year high of $35.29 and a one-year low of $16.61. Currently, Altice Usa Inc has an average volume of 1.77M.
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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.
