(Reuters) - Altice USA Inc’s (ATUS.N) shares could rise by 50 percent to approach nearly $30 as tax benefits and share buybacks fortify a company hoping to stave off cable television subscription declines, according to Barron’s.
The U.S. financial newspaper said Altice USA’s cash flow was rising after the company cut costs. The company can also offset some future taxes using losses not booked in previous years and use the extra cash to repurchase its shares.
The cable TV provider, which is expected to complete a spinoff from European telecom company Altice NV (ATCA.AS) next month, has been stepping up efforts to cushion the impact of “cord-cutting” as viewers drop cable packages and move to streaming services such as Netflix Inc (NFLX.O).
Altice USA is working to expand in high-speed internet as well as by offering “skinny bundles” of fewer channels to subscribers at lower prices.
Altice USA’s shares could reach the “high 20s,” according to Barron’s, after closing at $18.48 on Friday. The paper did not give a timeframe for such an increase.
Reporting by Trevor Hunnicutt; Editing by Peter Cooney