In a report released today, John Hodulik from UBS maintained a Buy rating on Altice Usa, with a price target of $2.00.
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John Hodulik has given his Buy rating due to a combination of factors influencing Altice USA’s financial outlook. The company has been actively working on cost-saving measures to counterbalance the decline in revenue, with management maintaining its EBITDA target for 2025 despite lowering revenue guidance. This indicates confidence in operational efficiencies and strategic investments, such as increased capital expenditure to support growing demand in their Lightpath segment.
Furthermore, while broadband losses remain a challenge due to competitive pressures, Altice USA is expected to see improvements in business and advertising revenues. The company’s efforts to launch new wireless plans aim to enhance customer retention and increase residential average revenue per user (ARPU) in the coming years. Despite the high leverage, with a significant portion of debt maturing in 2027, the expectation of positive free cash flow and improving EBITDA trends supports the Buy rating.
In another report released on November 7, TD Cowen also maintained a Buy rating on the stock with a $2.50 price target.