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JPM on Altice 4 months ago...
The next JPM pick we're looking at is a telecom company, Altice USA. Altice is a cable TV provider, with 4.9 million customers across 21 states. The bulk of these customers receive service through two of Altice’s brands, Optimum and Suddenlink. Altice’s business has been solid over the long term, and the stock is up 52% in the last 12 months. The company is consistently ranked in the top 5 cable TV companies in the US market, by customer base. Over the past two years, since 1Q19, Altice’s revenues have been fairly steady, with the quarterly top line continually registering between $2.4 billion and $2.54 billion. In the most recent quarter reported, 1Q21, the top line was $2.48 billion. EPS told an even better story; at 58 cents per share, it was down 2 cents (or 3%) from Q4 but up strongly from the 1 cent EPS loss reported in 1Q20. In a key metric, Altice reported strong cash flows in Q1. Operating cash flow grew more than 17% year-over-year, reaching $862 million. This was driven partly by earnings growth and partly by reduced capital expenditures. JPMorgan's Philip Cusick is impressed by Altice’s solid business foundation, noting: “We continue to like ATUS on solid fundamentals, strong capital returns, and an attractive valuation based on a 10.3% fully-taxed 2021 FCF yield and low-single digit revenue growth... Altice remains on track to achieve its 2021 residential broadband subscriber growth target of in line with or better than 2019 and 2018 growth.” To this end, Cusick rates ATUS an Overweight (i.e. Buy) along with a $62 price target. This figure implies an upside of 80% for the next 12 months. (To watch Cusick’s track record, click here) What does the rest of the Street think? Looking at the consensus breakdown, opinions from other analysts are more spread out. 5 Buys, 3 Holds and 1 Sell add up to a Moderate Buy consensus. In addition, the $42.33 average price target indicates ~23% upside potential from current levels. (See ATUS stock analysis on TipRanks) |
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Msg # | Subject | Author | Recs | Date Posted |
177388 | Re: JPM on Altice 4 months ago... | chicago484 | 0 | 9/25/2021 11:19:28 PM |
177392 | Re: JPM on Altice 4 months ago... | Professor Longhair | 0 | 9/26/2021 12:16:56 PM |
177397 | Re: JPM on Altice 4 months ago... | gzkom | 3 | 9/26/2021 2:15:58 PM |