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UPDATE: Drexel Hamilton Reiterates Buy Rating, Raises PT on Shenandoah Telecommunications

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In a report published Monday, Drexel Hamilton reiterated its Buy rating on Shenandoah Telecommunications (NASDAQ: SHEN), and raised its price target from $18.00 to $20.00.

Drexel Hamilton noted, “We expect the legacy wireline segment to remain relatively stable, generating about $4-5 million a year in EBITDA to fund the wireless and cable expansions, and pay the $0.36 per share annual dividend. Shentel has been the fastest growing publicly trade wireless company recently in terms of subscriber growth and we expect the investments to accelerate EBITDA from $70 mm this year to over $90 mm by 2016. Cable sector investments are driving cable modem growth and should allow EBITDA to double from $6.8 mm this year to $15.5 mm by 2016. Overall, EBITDA should grow from $97 mm this year, to over $125 mm by 2016. While this growth may sound aggressive in light of slowing growth seen by many peers, we think it is realistic in light of the enormous investments Shentel is making for a company its size.”

Shenandoah Telecommunications closed on Friday at $15.70.

Latest Ratings for SHEN

DateFirmActionFromTo
Oct 2014MacquarieInitiates Coverage onOutperform
Mar 2013Raymond JamesInitiates Coverage onOutperform
Aug 2012Drexel HamiltonMaintainsBuy

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