Altice Usa, the Communication Services sector company, was revisited by a Wall Street analyst today. Analyst Jessica Reif Ehrlich from Bank of America Securities maintained a Sell rating on the stock and has a $1.50 price target.
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Jessica Reif Ehrlich’s rating is based on several factors, primarily revolving around Altice USA’s ongoing financial and operational challenges. Despite some initial signs of stabilization, such as improved mobile net additions and video attach rates, the company still faces significant hurdles. The broadband sector, a crucial component of Altice’s business, has not shown year-over-year improvement, largely due to increased competition from fiber and fixed wireless access providers.
Moreover, Altice USA’s high leverage remains a critical concern, with a leverage ratio of 7.4 times for CSC Holdings. This financial strain is compounded by declining EBITDA, substantial fiber investments, and elevated capital expenditures. The competitive landscape and financial pressures contribute to the execution risks that Altice faces in its turnaround efforts, leading to the Sell rating. The company’s projected declines in revenue and EBITDA for 2025 further underscore these challenges, reinforcing the cautious outlook.
In another report released on June 25, Wells Fargo also maintained a Sell rating on the stock with a $1.00 price target.