In a report released today, Hamed Khorsand from BWS Financial maintained a Buy rating on Shenandoah Telecommunications Co, with a price target of $26.00.
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Hamed Khorsand has given his Buy rating due to a combination of factors influencing Shenandoah Telecommunications Co’s current and future performance. The company has experienced a noticeable decline in video customers, which has affected its quarterly results. However, this decline is offset by the promising growth in their Glo Fiber services, which added over 5,700 new subscribers in the second quarter, surpassing expectations.
Khorsand notes that while the legacy pay TV service has been de-emphasized for several years, its impact on revenue remains significant due to increasing monthly prices. Despite this, the accelerated growth in Glo Fiber is a positive indicator, suggesting that SHEN is on track to achieve positive free cash flow by 2027. This potential for future growth, coupled with the current undervaluation of SHEN shares, supports the Buy rating.