Altice USA: stock hit by broker downgrade
(CercleFinance.com) - Credit Suisse yesterday downgraded its "outperform" rating on the US subsidiary of the European telecommunications group to "neutral".
The broker, which has also almost halved its target price for the share from 46 dollars to 24 dollars, explains that it prefers to steer clear until it has more information on the group's strategic aims.
Analysts note that Altice USA is currently trading well below its book value and that the reorientation of the management team, which has shifted its focus on margins and takeovers towards a more aggressive strategy in fiber, could prove to beneficial in the long term.
However, analysts also believe that the new strategy deployed by the group's management team (which will be detailed in its Q3 results) could take several quarters, or more, before bearing fruit.
With negatives outweighing positives, along with a slashed target price, the share closed down almost 6% at under 19.5 dollars yesterday.
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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, which has also almost halved its target price for the share from 46 dollars to 24 dollars, explains that it prefers to steer clear until it has more information on the group's strategic aims.
Analysts note that Altice USA is currently trading well below its book value and that the reorientation of the management team, which has shifted its focus on margins and takeovers towards a more aggressive strategy in fiber, could prove to beneficial in the long term.
However, analysts also believe that the new strategy deployed by the group's management team (which will be detailed in its Q3 results) could take several quarters, or more, before bearing fruit.
With negatives outweighing positives, along with a slashed target price, the share closed down almost 6% at under 19.5 dollars yesterday.
Copyright (c) 2021 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.