Altice Europe: Oddo upgrades stock; raises target price

(CercleFinance.com) - On Friday Altice Europe announced reaching an exclusivity agreement with institutional investors to sell 49.
99% of SFR FTTH's capital - the division that manages the optical fiber network of its main subsidiary - for 1.8 million euros.

Following this announcement, Oddo has upgraded its rating on the stock to “Buy” (vs. Neutral) and has raised its target price to 3 euros (vs. 2.5 euros).

Oddo considers that this deal will create a gross value of at least 1.6 billion euros for Altice, or 1.35 euro/share, which includes the margin that SFR will make on the JV for the construction of 1m lines/year, which it estimates at 50 million euros/year.

Analysts still estimate EBITDA of 3.62 billion euros for SFR in 2019 and 5.25 billion euros for Altice Europe, which is slightly below the consensus.



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