Altice-USA (ATUS) PT Raised to $42 at Raymond James on Reduced Cord Cutting and Ongoing Share Repurchases
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Raymond James analyst Frank Louthan raised the price target on Altice-USA (NYSE: ATUS) to $42.00 (from $35.00) ahead of 4Q results on the belief that customers are less likely to cut the cord for the next few quarters as they are quarantined at home due to COVID. The company has also bought back ~64.8 million shares through its recently announced share repurchasing program, and is expected to buy back another ~$4.8B in FY'20.
The analyst reiterated a Strong Buy rating, stating "We are updating our 2020 estimates for revenue, EBITDA, and FCF/share to $9.88 billion, $4.40 billion, and $3.31 from $9.85 billion, $4.39 billion, and $3.10, respectively. For 2021, our estimates move to $10.10 billion, $4.50 billion, and $3.87 from $9.97 billion, $4.54 billion, and $3.23, respectively." He went on to state "Altice currently trades at ~9x 2021E FCF/share, a discount to the cable group at 15x (12x, excluding Cable One). We are raising our PT to $42 (from $35), based on ~11x 2021E FCF/ share, in line with the rest of the group."
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