Shenandoah Telecommunications Co (SHEN – Research Report), the Communication Services sector company, was revisited by a Wall Street analyst today. Analyst Hamed Khorsand from BWS Financial maintained a Buy rating on the stock and has a $26.00 price target.
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Hamed Khorsand has given his Buy rating due to a combination of factors that highlight Shenandoah Telecommunications Co’s potential for growth and financial improvement. The company has shown consistent growth in its Glo Fiber customer base, with subscriber numbers nearing 71,000, and is expected to surpass 75,500 by the end of the second quarter. This growth trajectory, although slightly below projections, indicates a strong market presence and potential for future expansion.
Furthermore, Shenandoah Telecommunications is on the verge of generating free cash flow as it continues to expand its network, with homes passed approaching 600,000 and a penetration rate exceeding 20% in Glo Fiber areas. Despite the company’s exposure to debt due to network expansion, the adjusted EBITDA is rising faster than anticipated, showcasing financial resilience and operational efficiency. These factors collectively support the Buy rating, with a target price of $26 over the next 12 months.