Analyst Jessica Reif Ehrlich from Bank of America Securities reiterated a Sell rating on Altice Usa (ATUS – Research Report) and keeping the price target at $1.50.
Protect Your Portfolio Against Market Uncertainty
- Discover companies with rock-solid fundamentals in TipRanks' Smart Value Newsletter.
- Receive undervalued stocks, resilient to market uncertainty, delivered straight to your inbox.
Jessica Reif Ehrlich’s rating is based on a combination of factors that highlight significant challenges for Altice USA. The company reported mixed first-quarter results, with revenue surpassing expectations but EBITDA falling short. Despite providing a 2025 outlook that suggests stabilization in broadband net losses and EBITDA, the forecasted flat year-over-year EBITDA growth indicates potential struggles ahead, particularly with anticipated political advertising headwinds.
Altice USA faces substantial execution risks in its turnaround efforts, primarily due to increasing competition from fiber operators and fixed wireless access providers. The company’s leverage remains high at 7.8 times the last two quarters annualized, which is concerning given the declining EBITDA. Additionally, there is a consistent decline in linear video offerings, further complicating the company’s recovery prospects. These factors contribute to the reiterated Underperform rating and a price objective of $1.50.
In another report released on May 1, J.P. Morgan also maintained a Sell rating on the stock with a $0.00 price target.