Benchmark cuts WideOpenWest price target to $6.50, maintains buy

On Thursday, Benchmark analyst Matthew Harrigan adjusted the price target for WideOpenWest (NYSE:WOW) shares, lowering it to $6.50 from the previous $7.50, while still endorsing the stock with a Buy rating. The stock currently trades at $4.28, near its 52-week low of $4.03, according to InvestingPro data, which offers comprehensive analysis through its Pro Research Reports covering over 1,400 US stocks. Harrigan’s reassessment follows WideOpenWest’s announcement of a partnership with the Columbus (WA:CLC) Clingstones, a minor league baseball team affiliated with the Atlanta Braves, to provide exclusive broadband services at their Synovus (NYSE:SNV) Park stadium.

Despite the partnership not having a significant impact on financial estimates, it demonstrates the effectiveness of WideOpenWest’s broadband solutions in Columbus and other small to mid-sized communities in Georgia. The analyst’s valuation of the company’s fair equity value is based on a discounted cash flow analysis, which factors in the execution of WideOpenWest’s expansion plans for its fiber network.

The company’s strategic moves, including the new $200 million super priority credit agreement signed in October 2024, are expected to support its goal of reaching 400,000 new fiber homes by the end of 2027. InvestingPro data reveals a significant debt burden with a debt-to-equity ratio of 5.39x and a current ratio of 0.66, indicating potential liquidity challenges. The company maintains a FAIR financial health score of 1.82 out of 5. Benchmark’s revised price target aligns with the S&P 400’s performance and incorporates a cost of equity for small to mid-cap companies in their valuation model.

Furthermore, the analyst suggests that the $4.80 per share buyout proposal from DigitalBridge Investments and Crestview, presented in May 2024, underscores the potential value of WideOpenWest stock, especially for investors seeking stability amidst current market volatility. Recent InvestingPro data shows revenue declined by 8.37% in the last twelve months, with analysts expecting further challenges ahead. Subscribers can access additional insights and 7 more ProTips about WideOpenWest’s financial outlook through the platform’s detailed analysis tools. Harrigan’s commentary implies confidence in WideOpenWest’s liquidity position and its ability to pursue significant fiber infrastructure projects.

In other recent news, WideOpenWest Inc . reported a decline in total revenue for the first quarter of 2025, with figures down 7.1% to $150 million. Despite this decrease, the company achieved a record-high adjusted EBITDA margin of 51.1%, with adjusted EBITDA rising by 13.8% to $76.7 million. High-speed data revenue now accounts for 70.3% of the company’s total revenue. Analysts had forecasted an earnings per share (EPS) of -$0.2067, and the actual revenue slightly surpassed expectations, coming in at $150 million against a forecast of $148.27 million. Looking ahead, WideOpenWest has provided guidance for the second quarter, projecting high-speed data revenue between $101 million and $104 million, with total revenue expected to range from $141 million to $144 million. The company is also planning a significant investment in greenfield market expansion, with spending anticipated to be between $60 million and $70 million for the year. Despite the revenue drop, the market’s reaction has been optimistic, reflecting investor confidence in the company’s strategic shifts toward high-speed data services.

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