Altice USA stock price target lowered to $3 at TD Cowen on EBITDA miss

Published 08/08/2025, 14:36
Altice USA stock price target lowered to $3 at TD Cowen on EBITDA miss

Investing.com - TD Cowen lowered its price target on Altice USA (NYSE:ATUS) to $3.00 from $4.00 on Friday, while maintaining a Buy rating following the company’s second-quarter 2025 results. According to InvestingPro data, the stock has declined over 11% in the past week, with analyst targets ranging from $1.00 to $5.50.

The firm noted that Altice USA delivered in-line revenue and showed progress in broadband subscriber key performance indicators, but reported a significant EBITDA miss that raises execution risk for the company. The company’s last twelve months EBITDA stands at $3.3 billion, with InvestingPro analysis indicating a Fair Value that suggests the stock is currently undervalued.

Management has reiterated its $3.4 billion EBITDA target, indicating that second-half 2025 operating expenses should moderate due to workforce realignment, improving revenue trends, and the reduction of one-time costs related to professional fees, AI, and marketing campaigns.

TD Cowen expressed positive sentiment about Altice USA’s HFC ABS debt raise, which represents a favorable development for the company’s financial structure.

Despite the EBITDA shortfall, TD Cowen maintained its Buy rating on Altice USA shares, suggesting continued confidence in the company’s long-term prospects despite near-term challenges.

In other recent news, Altice USA reported its second-quarter earnings for 2025, which showed a significant miss on earnings per share (EPS) expectations. The company posted an EPS of -$0.21, falling short of the forecasted -$0.01 by a substantial margin. Despite this, revenue met expectations, coming in at 2.15 billion dollars. This earnings miss has raised concerns among investors. Additionally, analysts have been closely monitoring Altice USA’s financial performance, although there were no specific upgrades or downgrades reported from major firms at this time. These recent developments highlight the challenges Altice USA faces in meeting market expectations.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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