UPDATE: Wells Fargo Upgrades Cable One (CABO) to Overweight
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Wells Fargo analyst Steven Cahall upgraded Cable One (NYSE: CABO) from Equal Weight to Overweight with a price target of $2,100.00.
The analyst comments "For CABO we use 17.5x our blended EBITDA (CY22/23E) for the residential data and business services segment, a premium to cable peers, due to the favorable competitive dynamics of its rural footprint. For the residential video and voice segments we use 4x to reflect continued subscriber declines. We place a 4x multiple on the company's "Other" revenue, and value the unconsolidated investments in MBI, Wisper, Nextlink etc at $1.3bn (conservative given potential net add/EBITDA contributions, now includes a future JV + SPAC). This sums to a target EV of $17B, or 17.5x NTM EBITDA. After reducing net debt, we derive a $2,100 price target. We note that our target multiple is ~2x our CHTR target with CABO's broadband subscriber growth and FCF growth at a similar ratio."
Shares of Cable One closed at $1440.36 yesterday.
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Create E-mail Alert Related CategoriesAnalyst Comments, Upgrades
Related EntitiesWells Fargo, SPAC
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