Altice: Credit Suisse cuts target price to 10 euros.

(CercleFinance.com) - Credit Suisse (CS) has updated its analysis on a telecom group that has been in a spin recently - Altice.


CS analysts maintain their "neutral" rating on the Dutch stock, although have cut their earnings estimates for it, which has resulted in the Swiss broker slashing its target price from 17 euros to 10 euros.

Their analysts draw conclusions from the group's unveiled accounts, forecasts and strategic reorientation that Alice, which Patrick Drahi has recently taken charge of. As a result, CS has cut its 2018 EBITDA estimate by 5% to 9.5 billion euros. Remember that the group is burdened by net debt of around 51 billion euros.

"We believe the focus on delevering means no buybacks and potentially lower capex," we read in CS' report. However, the fact is that in France in particular, capex will be required, its report says with concern.

Admittedly, the share Altice has collapsed (-53% over a month), although Credit Suisse remains cautious and mentions the group's "continued concerns about the long-term impact from Altice's strategy," as well as "a great deal of uncertainty on the outlook."


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