Optimum Communications has had its fair value estimate reduced from US$1.19 to US$1.06, bringing model pricing closer to where the stock has been trading. BNP Paribas upgraded the stock to Neutral from Underperform, signaling a less cautious stance, while at least one analyst maintains a Sell rating with a US$0.50 price target. The revised fair value reflects an expected revenue decline easing from roughly 3.54% to about 3.10%, a net profit margin moving from 10.31% to about 10.40%, and a future P/E multiple shifting from about 1.07x to roughly 0.42x. The discount rate has moved from 12.46% to 12.54%.
Optimum Communications, Inc.Fair value estimate trimmed from US$1.19 to US$1.06, reflecting lower expected revenue and higher discount rate.
BNP Paribas SA