Altice USA: Strategic Focus on EBITDA and Operational Efficiency Justifies Buy Rating

TD Cowen analyst Gregory Williams maintained a Buy rating on Altice Usa today and set a price target of $2.50.

Gregory Williams’s rating is based on a combination of factors that reflect Altice USA’s strategic decisions and financial outlook. Despite facing intense competition in the broadband market, Altice has chosen to prioritize maintaining its EBITDA over aggressively pursuing subscriber growth. This decision has resulted in achieving an all-time high gross margin of 69.7%, which is a significant accomplishment and demonstrates the company’s focus on cost structure and operational efficiency.
Moreover, Altice has reiterated its 2025 revenue and EBITDA guidance, signaling confidence in its financial targets. The company has implemented operational improvements, such as workforce efficiencies and disciplined marketing costs, which are expected to contribute to EBITDA growth in the upcoming quarters. These strategic moves, along with the company’s focus on mobile convergence to reduce churn, suggest a positive long-term outlook, justifying the Buy rating given by Gregory Williams.