Cable One Q2 estimates lowered on ACP impact at KeyBanc

After catching up with Cable One, KeyBanc analyst Brandon Nispel believes the Affordable Connectivity Program subscriber impact should be primarily in Q2 as opposed to Q2 and Q3. Due to ACP impact being felt in Q2, the company’s average revenue per user is likely below prior assumptions, the analyst tells investors in a research note. As a result, the firm lowered Q2 estimates for high speed data subscribers and pricing. However, Cable One’s underlying subscriber trends should remain positive, and revenue per user declines should moderate, the firm contends. It believes investors underappreciate Cable One’s long-term ability to drive subscriber growth and keeps an Overweight rating on the shares with an $850 price target.