Bank of America Securities analyst Jessica Reif Ehrlich reiterated a Sell rating on Altice Usa yesterday and set a price target of $1.50.
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Jessica Reif Ehrlich’s rating is based on several challenges facing Altice USA, which contribute to a less favorable outlook for the company’s stock. One of the primary concerns is the stalling improvement in broadband trends, as the company is expected to report a net loss in broadband subscribers similar to the previous year. This stagnation is attributed to increased competition from fiber operators and fixed wireless providers, which are aggressively expanding their offerings.
Additionally, Altice USA faces significant execution risks due to its high leverage, with a debt level approximately eight times its last two quarters annualized EBITDA. This financial strain is compounded by declining EBITDA and upcoming debt maturities in 2027. The company’s linear video offerings are also experiencing steady declines, further impacting its financial performance. Given these factors, Ehrlich maintains a Sell rating, reflecting the challenges in Altice’s turnaround efforts and the competitive pressures it faces.