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Imperial Capital Pens 6-Point To-Do List For Ascent Capital

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Imperial Capital Pens 6-Point To-Do List For Ascent Capital

Imperial Capital has outlined a six-point to-do-list for Ascent Capital Group Inc (NASDAQ: ASCMA), while downgrading the stock to In Line from Outperform.

The following is the six-point list:

    1. "Stabilizing, then bringing down attrition
    2. "Reducing the subscriber creation multiple more than just 100-150bp
    3. "Growing average revenue per user (ARPU)
    4. "Adding and successfully marketing new applications to its dealers
    5. "Growing partnerships with cable and telcos
    6. "Leveraging Alarm.com's highly regarded dealer training program."

Related Link: BB&T Initiates Ascent Capital At Hold

Analyst Jeff Kessler noted that the shares could be "range bound" eventually, but it would take time for the company to improve operating metrics due to longer-than-expected attrition headwinds.

The analyst highlighted that the elevated attrition level comes at a time when the service margins of both the company and industry are being pressured by the rapid adoption of more expensive wireless systems.

"We remain focused on the company improving its operating metrics (e.g., creation cost multiple; RMR), before the Monitronics 9.125 percent senior notes mature on 4/1/20," Kessler wrote in a note.

Kessler maintained his $20 price target, about 10 percent above the recent share price.

Shares of Ascent Capital closed Tuesday's regular trading session at $17.96.

Latest Ratings for ASCMA

DateFirmActionFromTo
May 2018MaintainsHoldHold
Mar 2018MaintainsHoldHold
Mar 2018MaintainsOutperformOutperform

View More Analyst Ratings for ASCMA
View the Latest Analyst Ratings

Posted-In: imperial capital Jeff KesslerAnalyst Color Long Ideas Downgrades Price Target Analyst Ratings Trading Ideas Best of Benzinga

 

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