Cable One price target lowered to $222 from $325 at JPMorgan

JPMorgan analyst Sebastiano Petti lowered the firm’s price target on Cable One (CABO) to $222 from $325 and keeps a Neutral rating on the shares. The firm attributes the 33% pullback in shares since the Q1 results on May 1 to the “surprising” suspension of the company’s $11.80 per share dividend to prioritize de-levering in addition to weaker core broadband subscriber and price trends. While management highlighted the success of several pilots, JPMorgan is skeptical that Cable One’s new go-to-market efforts will be able to inflect broadband sub growth in the near-to-medium term due to persisting fixed wireless access pressure and continued increases in fiber overlap, the analyst tells investors in a research note.