Altice USA Earnings: Few Signs of Progress; Remainder of the Year Critical

The next 12 months will go a long way toward determining Altice USA’s fate. We are lowering our fair value estimate to $13 per share from $19 on expectations for weaker broadband pricing and margins. We still believe Altice USA owns an attractive set of assets, but its equity value is tiny relative to its debt load, making this a highly volatile investment.