In the world of finance, optimism and pessimism can sway markets and influence stock prices. Among the current assets covered by a panel of eighteen ratings firms, Altice USA, Inc. (NYSE:ATUS), has been marked with a “Hold” consensus recommendation as reported by Bloomberg Ratings. However, there’s an intriguing discrepancy among the available recommendations of one research analyst valuating shares with a sell rating while nine assign it a hold rating and three have even inked their approval in a buy rating for Altice USA.
So what is the future for this corporation? The average twelve-month price target among analysts that have offered their assessments in the last year stands at $8.60. It’s clear that Astice USA’s performance during its most recent quarterly earnings hasn’t necessarily inspired confidence in all observers. The company posted losses compared to analysts’ optimistic estimates of generative values–a discrepancy further complicated by lower revenue numbers than expected at $2.37 billion compared to anticipated figures of $2.40 billion.
Even with such disappointing news, it’s important to note that Altice USA did post net margins above 2%, and though they fell on negative return on equity (ROE) percentage rates relative to prior profit statements; there are undoubted signs of an organization fighting hard to reclaim growth momentum alike past consecutive quarter experiences.
Equity research analysts view open wider scopes amid assured attention that forecasters should remain vigilant about capitalizing potential short-term fluctuations towards long-term investments within companies such as Altice USA. On this basis, investors continue awaiting alternative statistical outputs anticipating different business approach routes at staving off predicted negativity turning further into inevitable financial harm extending beyond subsidiary quarters into radical potential future changes eventually shifting whole aspects endemic strength towards greater overall sustainability and fortitude ultimately reassuring them from the present status quo albeit remains carefully monitored so as to mitigate investment risk where possible until strategic clarity is forthcoming when again is another matter entirely but for sure they have lots of work to do.
Altice USA Faces Negative Outlook from Analyst Reports
Altice USA Receives Mixed Reviews from Analysts
Altice USA, one of the leading telecommunications companies based in New York, has been trending in the financial sphere due to several analyst reports that recently came out. Unfortunately, for Altice USA, most of these reports had a negative outlook on the company’s future.
Cowen, Morgan Stanley, Barclays, TD Securities and The Goldman Sachs Group all released reports containing vital information regarding the valuation and rating of ATUS shares. Cowen dropped their price objective from $21.00 to $18.00, Morgan Stanley reduced theirs from $6.00 to $4.00 and rated Altice an “equal weight,” while Barclays reduced their price objective from $4.00 to $2.00 with an “equal weight” rating as well.
Furthermore, TD Securities drastically cut their target price on shares of Altice USA from $6.00 to $4.75 and set a “hold” rating for the company in their report last February 23rd. Finally, The Goldman Sachs Group followed suit by cutting Altice USA’s shares from a “buy” rating to a “neutral” rating while dropping their target price from $7.00 to $5.00 back on January 10th.
Shares of ATUS opened at around 3 dollars on Monday after these volatile reports were released – marking it one of the lowest share valuation periods ATUS has witnessed over time.
According to Bloomberg, some experts suggest this pessimistic view towards Altice USA comes after aggressive efforts by its main shareholder group (headed by Franco-Israeli billionaire Patrick Drahi) began stripped off employees’ benefits post acquisition including health care coverage reduction that bumped up complaints online and broader media spotlight early this year adversely affected customer confidence in ALTICE’s services.
Meanwhile, other market analysts argue that the industry is experiencing significant regulatory changes which negatively impact Altice’s ability to acquire more customers and retain the already existing ones. However, despite these, Altice USA still seemed confident in pushing through with its strategies for growth.
Altice USA has a fifty-two week low of $2.98 and a fifty-two week high of $13.17, indicating tremendous volatility throughout the year. At present, the company has a market capitalization of $1.40 billion, P/E ratio of 7.29 PEG ratio of 1.11 and beta of 1.37 along with average sma values over 50 days at $3.78 and 200 da ys at $4.51 respectively.
Whatever direction ATUS moves towards next or how accurate those claims that shaved off benefits from employees affected customer confidence would turn out to be is subjective; however, one thing seems certain is that Altice needs a strategy to combat growing concerns raised by both customers and investors alike convincingly -severe cost-cutting measures on its services might not suffice here anymore!
