In a report released today, Gregory Williams from TD Cowen maintained a Hold rating on Cable ONE (CABO – Research Report), with a price target of $444.00.
Gregory Williams has given his Hold rating due to a combination of factors surrounding Cable ONE’s recent performance and strategic decisions. The company reported disappointing results, including significant broadband subscriber losses and a reduction in dividend payouts. These developments have raised concerns among investors about the company’s ability to achieve a turnaround in its broadband segment.
Despite these challenges, management remains optimistic about future growth, particularly in broadband revenue driven by average revenue per user (ARPU) improvements. They attribute recent subscriber losses to temporary issues, such as billing system migrations, which they claim have been resolved. Management’s confidence in a rebound, along with strategic investments expected to stabilize in the coming months, suggests potential for recovery. However, the dividend cut adds uncertainty, and investors may require consistent positive performance over several quarters to regain confidence.
According to TipRanks, Williams is an analyst with an average return of -3.7% and a 43.26% success rate. Williams covers the Communication Services sector, focusing on stocks such as Lumen Technologies, Cable ONE, and AT&T.