Altice USA Spinoff Gets Wall Street Applause
Wall Street is bullish on Altice USA's pending spinoff from parent Altice NV. Altice apparently listened to shareholders with the announcement of Altice USA's spinoff from parent Altice NV, given the "dismal" stock performance of the two last year, Wells…
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Fargo analyst Marci Ryvicker wrote investors Monday. And MoffettNathanson analyst Craig Moffett emailed investors that Altice USA "suffered" from its connection to the European parent with its heavy debt load and aggressive cost reductions. Altice USA shares closed Tuesday at $23.11, up 9.6 percent. Altice announced the spinoff Monday and said the two will have separate management teams after the transaction, with Altice founder Patrick Drahi retaining control of both companies and acting as chairman of Altice USA. Altice said the separation will let the two companies focus on different market dynamics, strategies and regulatory regimes. It said Altice USA's business strategy will be a focus on revenue growth, its Altice One set-top box and full-scale deployment of its fiber-to-the-home buildout. It said the separation is expected to close by Q2, after Altice NV shareholder and regulatory approvals.