Lightpath reorganization approval a net positive for Altice, says Raymond James

Raymond James analyst Frank Louthan reiterated an Outperform rating and $3.50 price target on Altice USA (ATUS) after the New York Department of Public Service issued a letter stating the Lightpath reorganization that was being requested to facilitate an asset-backed securities transaction was approved and did not require further action by the commission. The firm believes the development is a net positive for the business as it values Lightpath at significantly higher than the firm believes is implied in the trading value of the shares. The firm added it believes Lightpath is a high quality fiber asset that is seeing solid growth and demand from AI and related data traffic.