UPDATE: HSBC Downgrades Altice-USA (ATUS) to Hold

(update comment)

HSBC analyst Sunil Rajgopal downgraded Altice-USA (NYSE: ATUS) from Buy to Hold with a price target of $28.00.

The analyst comments "...ATUS will likely still face continued erosion of its pay-TV base as a result of cord-cutting and cord-shaving. TV revenues are low gross margin streams due to content costs (c40%) vs. broadband (c80%). When clients go for broadband-only products to rely on over the top (OTT) content, they also tend to take higher-end broadband products. The key, therefore, for ATUS is to keep its capacity to price the product accordingly and monetize the investment it makes in the network (fiber) to offset the loss of revenue and margins from the pay-TV side of the business."

For an analyst ratings summary and ratings history on Altice-USA click here. For more ratings news on Altice-USA click here.

Shares of Altice-USA closed at $26.83 yesterday.

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