Benjamin Swinburne, an analyst from Morgan Stanley, maintained the Hold rating on Altice Usa. The associated price target is $2.00.
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Benjamin Swinburne has given his Hold rating due to a combination of factors affecting Altice USA’s current market position. The company is undergoing a strategic transformation, focusing on profitability rather than subscriber growth amidst increasing broadband competition. This shift is evident in their recent name change to Optimum Communications and their efforts to improve expense efficiency, which has resulted in an all-time high gross margin.
However, the competitive landscape has intensified, with rivals like AT&T expanding their services, posing significant challenges to Altice USA’s market share. Additionally, broader economic pressures, such as weak broadband demand growth and financial strain on low-end consumers, have led to a substantial impairment charge on the company’s cable franchise rights. These factors, combined with a high leverage ratio and declining adjusted EBITDA, contribute to the Hold rating as the company continues to refine its market strategies.
Swinburne covers the Communication Services sector, focusing on stocks such as Spotify, Echostar, and TKO Group Holdings. According to TipRanks, Swinburne has an average return of 11.7% and a 55.79% success rate on recommended stocks.
In another report released on November 7, Barclays also maintained a Hold rating on the stock with a $2.00 price target.