|
|
|
|
||
Re: JPM on Altice 4 months ago...Cusick messed up on this one, most recent Comments: Investment Thesis We maintain our Overweight rating on Altice USA, but lower our December 2022 price target to $30 (from $40 prior). While momentum is weak, we see long-term upside from the company’s step-up in network investments in the coming years despite commensurately lower FCF. Valuation We base our December 2022 price target of $30 primarily on a discounted cash flow analysis that assumes an 8.0% WACC and a 1.5% perpetual growth rate. On an EV/EBITDA basis, shares currently trade at 7.9x our 2022 estimate. Risks to Rating and Price Target Downside risks include: 1) fiber deployment and long-term capex levels may prove optimistic; 2) debt load and leverage; 3) accelerating video losses; 4) potential pick-up in telco competition (fixed or wireless); and 5) Altice USA is a controlled company. ——— |
return to message board, top of board |