cave canem schreef op 24 november 2017 15:23:
ALTICE ... zitten er hier mensen Long dit aandeel ?
krijg een serieuze koopaanbeveling met de vraag of ik mee wil doen van een investeringsbank, ze maken een zeer goed onderbouwde case
Altice
our dealingroom initiated coverage on Altice
the highly leveraged Telco (cable based services) is down 57% ytd, due to concerns about its debt ratio combined with disappointing earnings
I added the full report of which the first few pages summarize most issues
Clearly, not without risks, but so is its return perspective
let me know, if requested , i could elaborate on the analysis
loop er wat van mee
samenvattend
ALTICE
" with the shares having lost 48% since the start of the month, we now see a very good buying opportuity.
EUR 35bn of EUR 48bn of net debt has been refinanced in the last year, and we see neither a breach of cocenant nor a share issue looming
Less than 20% of this debt matures in the next four years
Revenues at SFR might decline for two more years, but French restructering benefits and US cost synergies will support high earnings growth, in our view
Free cash flow generation remains strong ( 2017e euro 5.5bn), while capex is expected to peak this year at 4bn euro, whiwh allows for a rapid de-leveraging.
- leverage not a serious concern ; if interest rates were to rise 500bps, finance charges would only rise 300m per year.
with 2018 EBITDA and Capex estimated at EUR 9.5bn and EUR 3.9bn respectively, this would hardly move the needle
- Fiber and content a strong combination
every year , Altice rolls out fiber to four mio new homes, which makes it the fastest and largest roll-out in the world
Also, it will spend 700m on content this year, and EUR 1bn in 2019e
we see 2 more years of revenue decline at SFR, but the French restructering benefits, the cost effeciencies in the US, and the market share gains through a superior product should provide strong earnings growth in the next few years, in our view
INITIATE with BUY