Market Overview

FBR Is Positive On Shenandoah Telecom, But Downgrades Shares On Valuation Concerns

FBR Is Positive On Shenandoah Telecom, But Downgrades Shares On Valuation Concerns
Related NTLS
Benzinga's Top Downgrades
Mid-Day Market Update: Tuesday's Movers, China's Yuan Devalued, U.S. Productivity and More
Related SHEN
Mid-Day Market Update: Dow Rises 150 Points; Energy XXI Gulf Coast Shares Plummet
Mid-Morning Market Update: Markets Edge Higher; CVS Health Earnings Top Estimates

FBR Capital downgraded Shenandoah Telecommunications Company (NASDAQ: SHEN) to Market Perform from Outperform, but lifted its price target to $35 from $31, based on their revised sum-of-the-parts valuation.

The company reported 2Q16 revenues of $130.3 million (52.1 percent increase year-over-year), beating the consensus estimate of $103.0 million, mainly caused by the inclusion of NTELOS Holdings Corp (NASDAQ: NTLS) results. Adjusted EBITDA dropped to $26.9M driven by higher SG&A associated with a higher number of PCS stores and the integration and migration of NTELOS customers to Shenandoah.

Related Link: Drexel Hamilton Highlights Upcoming Roadshows From Boeing And Others

"The 2Q results included approximately eight weeks of NTLS (following the deal's close on May 6, 2016) but, importantly, did not include all revenues from Sprint customers and wholesale customers in the NTLS region after closing, due to billing-cycle differences," wrote FBR.

The analysts also adjusted their FY16 revenue/adjusted EBITDA/EPS estimates to $342.5 million/$170.3 million/$0.56 following the quarterly results. Their FY17 revenue/adjusted EBITDA/EPS estimates currently stands at $640.0 million/$243.3 million/$1.35.

Full ratings data available on Benzinga Pro.

Do you have ideas for articles/interviews you'd like to see more of on Benzinga? Please email with your best article ideas. One person will be randomly selected to win a $20 Amazon gift card!

Latest Ratings for NTLS

Aug 2015Raymond JamesDowngradesMarket PerformUnderperform
Mar 2015JefferiesMaintainsHold
Feb 2015Wells FargoDowngradesOutperformMarket Perform

View More Analyst Ratings for NTLS
View the Latest Analyst Ratings

Posted-In: FBR CapitalAnalyst Color Earnings Downgrades Analyst Ratings


Related Articles (NTLS + SHEN)

View Comments and Join the Discussion!

Credit Suisse Downgrades CNOOC Amid Exhausted Cost-Cutting Efforts, Rising CapEx

Mid-Day Market Update: Mattress Firm Jumps Following Buyout; Digital Ally Shares Slide