Optimum Communications price target lowered to $1.75 from $2 at Goldman Sachs

Goldman Sachs lowered the firm’s price target on Optimum Communications (OPTU) to $1.75 from $2 and keeps a Sell rating on the shares. Optimum faces intensifying competition from fixed wireless and fiber, with no positive broadband net additions since 2020, while trading at a valuation premium to cable peers despite higher leverage, the analyst tells investors in a research note. Elevated debt levels and limited free cash flow constrain flexibility, and the valuation appears to reflect expectations for leverage reduction through a below-par debt exchange or tender, Goldman adds.