6 stories mentioning OPTUUpdated 28d ago
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Optimum Communications, Inc. Class A (OPTU) has an average rating of underweight and mean price target of $1.19, according to analysts polled by FactSet.(covers equity, commodity and economic research from major banks and research firms in North America, Asia and Europe. Research providers may contact us here: https://www..com/contact-us)
Optimum Communications (OPTU) shares jumped 81% in Monday trading after the company reported a series of transactions involving a newly formed unrestricted subsidiary, CSC Investments II, designed to raise and allocate about $500 million in capital.The unit raised $300 million through a private placement of preferred units to third-party institutional investors. It also exchanged $200 million of preferred units for Optimum common stock held by controlling stockholder Next Alt at $2.50 apiece.Optimum said the newly created subsidiary will hold the Optimum East Cable business and its 50.01% stake in Lightpath, as part of an internal reorganization aimed at making the assets financially and operationally independent from its parent, CSC Holdings.Separately, CSC Investments II launched a cash tender offer for up to 120 million shares of Optimum class A common stock, or up to $300 million in value, at $2.50 per share. The company said the offer is not subject to a minimum condition or financing condition and will expire on June 30.The unit said it expects to fund the tender offer with proceeds from the private placement and existing cash.Price: $1.19, Change: $+0.53, Percent Change: +80.80%
Optimum Communications (OPTU) shares were down nearly 10% in recent Friday trading after Citigroup downgraded the telecommunications provider to sell from neutral and cut its price target to $0.50 from $1.50.Trading volume stood at about 3.5 million shares compared with a daily average of nearly 2.8 million shares.Price: $0.79, Change: $-0.09, Percent Change: -9.87%
Optimum Communications, Inc. Class A (OPTU) has an average rating of underweight and mean price target of $1.25, according to analysts polled by FactSet.(covers equity, commodity and economic research from major banks and research firms in North America, Asia and Europe. Research providers may contact us here: https://www..com/contact-us)
CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:We lower our 12-month target price by $0.80 to $1.20, applying an EV/EBITDA multiple of 8.1x to our 2026 estimate, close to its 10-year historical average multiple at 7.7x. We cut our 2026 EPS estimate by $0.83 to a loss of -$0.57 and 2027's estimate by $0.09 to a loss of -$0.20. Broadband subscriber net losses totaled 64,000 for the quarter, or 56,000 when excluding a subscriber adjustment related to prior periods. The quarter was characterized by muted gross additions and elevated churn, attributed to intense competition and heavy promotional activity in the market. OPTU acknowledged that broadband subscriber trends were negatively impacted and that stabilizing these trends remains a challenge. Competitive intensity, particularly from fixed wireless, fiber overbuilders, and aggressive promotional offers, has increased, especially in the West, making market dynamics more challenging and contributing to subscriber and revenue pressures.
CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:OPTU's Q1 2026 results showed revenue declining 4.0% Y/Y to $2.07B, but EBITDA margins expanded to 38.2% (+110 bps Y/Y), reflecting operational efficiency gains. The company reported a $2.88B net loss due to a $2.7B non-cash impairment charge on cable franchise rights. Broadband net losses widened to 64k vs 37k in Q1 2025 amid intensifying competition from fixed wireless and fiber providers. However, mobile delivered exceptional growth with 52k net additions, the strongest in six years. Management is focused on product simplification, transparent pricing, and refining fiber migration strategy for acceleration in 2H 2026. The company maintains high leverage at 7.5x net leverage despite refinancing activities totaling $1.1B that extended debt maturities. Free cash flow deficit improved to -$137.4M from -$168.6M, with capital intensity reaching 14.9%. We believe the competitive environment will remain challenging as fiber deployments and fixed wireless access continue expanding across OPTU's footprint.
