Hamed Khorsand, an analyst from BWS Financial, maintained the Buy rating on Shenandoah Telecommunications Co. The associated price target remains the same with $26.00.
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Hamed Khorsand’s rating is based on Shenandoah Telecommunications Co’s promising growth prospects and strategic initiatives. The company has demonstrated a consistent increase in its customer base, particularly in its Glo Fiber segment, which exceeded expectations in the recent quarter. This growth is expected to continue, with the potential for acceleration in the fourth quarter due to a new five-year price guarantee.
Additionally, Shenandoah Telecommunications Co plans to reduce its capital expenditures in the coming year, which is anticipated to lead to the generation of free cash flow. Despite the current negative free cash flow, Khorsand sees the stock as undervalued, presenting an opportunity for investors as the company continues to expand its network footprint and improve its financial performance.
Based on the recent corporate insider activity of 181 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of SHEN in relation to earlier this year.