viewAltice USA Inc.

Altice USA rises as Goldman Sachs adds cable and broadband provider to its conviction list

The company's valuation is deemed attractive as it heads toward a spin-off from its French parent

hand holding remote control
Analysis indicates Altice USA is "well-positioned to drive top- and bottom -line growth"

Altice USA Inc. (NASDAQ:ATUS) shares are higher on word that Goldman Sachs has added the provider of broadband communications and video services to the investment firm's conviction list.

In mid-morning trading, Altice was up 4% to US$20.71 a share.

According to MarketWatch, Goldman Sachs analysts see Altice's valuation as attractive as it heads toward a spin-off from French parent Altice N.V.

"Our analysis indicates Altice USA is well-positioned to drive top- and bottom -line growth as the sector evolves owing to the material investments it is making in product enhancements, and the operator's proven track record at driving margin expansion through its cost-conscious operating model," Goldman Sachs analyst Brett Feldman wrote in a note to investors, according to MarketWatch.

Feldman wrote that Altice is trading at a steep discount relative to Charter Communications Inc. (NASDAQ:CHTR), its closet peer in the U.S. cable landscape, and other companies in the telecom sector, which indicates "the market is not factoring in Altice's materially higher earnings before interest, tax, depreciation and amortisation and its higher conversion of EBITDA into free cash flow."

Altice is expected to complete the spin-off from its parent during the second quarter.

Quick facts: Altice USA Inc.

Price: 23.25 USD

Market: NYSE
Market Cap: $13.8 billion

Add related topics to MyProactive

Create your account: sign up and get ahead on news and events


The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...



District Metals looking to unlock mystery of TomTebo Property with first...

District Metals Corp (CVE: DMX) CEO Garrett Ainsworth joined Steve Darling from Proactive with news the company has started an airborne survey of their TomTebo property. This program will cover the entire 5144 hectares of the property. Ainsworth telling Proactive this is the first time this...

10 hours, 6 minutes ago

2 min read