Altice: Morgan Stanley cuts target price.
(CercleFinance.com) - In a research report published this morning, Morgan Stanley maintains its "weight in line" rating on the Altice share of Patrick Drahi's Dutch telecom holding company.
However, it has (significantly) cut its target price for the share from 20.5 euros to 13.5 euros.
Analysts point out the share's 35% fall since the early November announcement of disappointing Q3 results. Indeed, Altice missed the consensus in terms of EBITDA, while the group's net debt represents between 5 and 5.5 times its EBITDA.
Analysts also underline rising interest rates, coupled with tougher conditions in the TMT (technology, media and telecoms) high-yield bond market. This should be borne in mind, given that the group's net debt, which is close to 50 billion euros, increased further in Q3.
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.
However, it has (significantly) cut its target price for the share from 20.5 euros to 13.5 euros.
Analysts point out the share's 35% fall since the early November announcement of disappointing Q3 results. Indeed, Altice missed the consensus in terms of EBITDA, while the group's net debt represents between 5 and 5.5 times its EBITDA.
Analysts also underline rising interest rates, coupled with tougher conditions in the TMT (technology, media and telecoms) high-yield bond market. This should be borne in mind, given that the group's net debt, which is close to 50 billion euros, increased further in Q3.
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.