Raymond James Downgrades Shenandoah After Good Start To 2015
In a report published Wednesday, analysts at Raymond James downgraded Shenandoah Telecommunications Company (NASDAQ: SHEN) from Outperform to Market Perform. Despite the good start to the year, the company's stock is more expensive than its U.S. wireless peers.
The company posted strong results for its CATV and wireless business for Q1, along with a healthy balance sheet. C-EBITDA and postpaid net additions for the quarter came in marginally above the estimates. However, the analysts "don't see any short-term strategic opportunities to expand the Wireless or CATV businesses."
The company reiterated its capex guidance for 2015 at $74.8 million, despite the low capex of $9.5 million posted for Q1. The company attributed its guidance to the weather and ramping of the Sprint Spark deployment in 2H.
According to Raymond James, "Management stated its priorities to putting cash to work are 1) strategic acquisitions in Wireless and Cable, 2) returning capital to shareholders by increasing the dividend, and 3) debt repayment."
Latest Ratings for SHEN
|Nov 2016||FBR Capital||Upgrades||Market Perform||Outperform|
|Aug 2016||Raymond James||Upgrades||Market Perform||Outperform|
|Aug 2016||FBR Capital||Downgrades||Outperform||Market Perform|
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