Altice: a rebound in share is playable, Bryan Garnier says.

(CercleFinance.com) - Indeed, the Altice share has lost almost half of its stockmarket value since the beginning of the month.
.. however, analysts at Bryan Garnier (BG) believe in this stock. Previously under review, they have now upgraded their rating on the share to buy, albeit cutting their target price from 22.8 euros to 15.2 euros (-33.3%).

Remember that Altice, the holding company of Patrick Drahi's telecoms empire, made a "profit warning" on 2 November, while its French subsidiary, SFR, is struggling. After this, the share of this heavily indebted group fell sharply on the Amsterdam Stock Exchange. Altice subsequently reshuffled the cards within its executive team, appointing Mr. Drahi the top position.

The broker says, "We believe the recent fall in the stock price is mainly due to a loss of confidence in Altice's ability to turn around the French operations, where the issue is not so much one of strategy as execution, triggering additional stress on the group's capital structure."

However, according to BG analysts, all is not lost. The broker emphasises the current weakness of the share's valuation multiples. This is while analysts are convinced “that recovery in the French fixed business will eventually happen, although its timing remains uncertain given the recent management changes.” In short, Bryan Garnier concludes that investors can play a rebound in the share price.



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