Altice: Credit Suisse maintains neutral rating.
(CercleFinance.com) - Credit Suisse analysts are not changing their minds about Altice, the holding company of telecom tycoon Patrick Drahi, after the announcement of a share buyback of one billion euros.
The broker maintain its neutral rating on the class A share, with a target price that it maintains at 24 euros.
The share repurchases of announced yesterday by Altice, which cover 5% of the group's capital excluding treasury shares will continue until the end of August 2018, and have prompted Credit Suisse to raise its free cash flow per share forecast by 3% for 2018. Remember that Altice shares have lost about 20% of their value since their June peak.
According to Credit Suisse, this transaction does not mean that the group has abandoned making new acquisitions in the US. On the downside, analysts deduce that Altice (as a European group) does not seem to intend to increase its capital to finance a possible extension of its scope across the Atlantic.
Credit Suisse adds that “There are still numerous M&A possibilities in the US, though visibility on which outcome is most likely is low at this point.”
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The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.
The broker maintain its neutral rating on the class A share, with a target price that it maintains at 24 euros.
The share repurchases of announced yesterday by Altice, which cover 5% of the group's capital excluding treasury shares will continue until the end of August 2018, and have prompted Credit Suisse to raise its free cash flow per share forecast by 3% for 2018. Remember that Altice shares have lost about 20% of their value since their June peak.
According to Credit Suisse, this transaction does not mean that the group has abandoned making new acquisitions in the US. On the downside, analysts deduce that Altice (as a European group) does not seem to intend to increase its capital to finance a possible extension of its scope across the Atlantic.
Credit Suisse adds that “There are still numerous M&A possibilities in the US, though visibility on which outcome is most likely is low at this point.”
Copyright (c) 2017 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.