Evercore sees healthy subscriber growth for cable stocks in Q3

Anterix

19/10/2021 12:40

** Evercore calls "demise" of broadband growth "greatly
exaggerated", maintains bullish rating on several cable stocks
    ** Says cable stocks have come under pressure recently, but
expects continued healthy subscriber growth, with ~900,000
subscriber net adds in Q3
    ** AT&T  T.N , T Mobile  TMUS.O , Verizon  VZ.N , Comcast
 CMCSA.O , Altice  ATUS.N  and other cable stocks edge up in
pre-market trade  
    ** Evercore has "outperform" ratings on cos including
Anterix  ATEX.O , Charter Communications  CHTR.O , Liberty
Global  LBTYA.O , TMUS, CMCSA, ATUS
    ** Brokerage thinks results will show slower broadband
growth while churn remains "very healthy", with cable capturing
~75% of net subscriber additions
    ** Evercore forecasts strong overall wireless subscription
growth with AT&T and TMUS leading on subscriber additions
    ** Calls CHTR their "top tactical trade" as any slowdown is
already priced into stock; adds TMUS is a long-term compounder,
though Q3 "won't be a material catalyst"
    ** The NASDAQ telecom index  .IXUT  has gained 5.66% this
year

 (Reporting by Anisha Sircar)
 ((Anisha.Sircar@thomsonreuters.com))