Cable One Maintains Overweight Rating and Stock Target Despite Accounting Issue, According to KeyBanc Analyst

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Cable One ($NYSE:CABO) is a leading provider of cable television, internet, and phone services in the United States. In recent years, Cable One has also expanded into the business services sector, offering internet and phone solutions for small and medium-sized businesses. Despite its strong performance in the market, Cable One has recently faced an accounting issue that has raised concerns among investors and analysts. The company reported that it had incorrectly accounted for certain expenses in its financial statements, resulting in a restatement of its earnings for the past three years. This news caused the company’s stock to drop by more than 10%, leading to speculation about its future performance.

However, according to a recent report by KeyBanc analyst Andy Hargreaves, the accounting issue has not shaken his confidence in Cable One’s potential. In fact, he reaffirmed the company’s Overweight rating and maintained its stock target of $850.00 per share. This recommendation comes despite the recent setback, highlighting KeyBanc’s belief in the long-term prospects of Cable One. Hargreaves believes that Cable One’s strong market position, diverse range of services, and solid financials make it a resilient company, capable of weathering short-term challenges. While the accounting issue may have affected the company’s earnings, Hargreaves remains optimistic about its ability to bounce back and continue its growth trajectory. Furthermore, Hargreaves noted that Cable One’s stock price has already started to recover following the initial drop, indicating that investors are not overly concerned about the accounting issue. This further strengthens his confidence in the company’s resilience and prospects. In conclusion, despite facing an accounting issue, Cable One remains a top pick for KeyBanc analyst Andy Hargreaves. With a reiteration of its Overweight rating and stock target, he believes that the company has the potential to overcome this setback and continue its strong performance in the market. As always, investors should conduct their own research and due diligence before making any investment decisions.

Stock Price

CABLE ONE, one of the leading providers of high-speed internet, cable television, and telephone services, saw a slight decrease in its stock price on Wednesday. The stock opened at $346.78 and closed at $342.11, down by 1.78% from the previous closing price of $348.3. This comes despite the recent accounting issue that the company disclosed in its quarterly report. The accounting issue, which CABLE ONE stated was related to its billing system, caused a delay in the company’s filing of its quarterly report with the Securities and Exchange Commission (SEC). This led to a decrease in investor confidence and a drop in the company’s stock price.

However, Nispel believes that this is just a short-term setback for CABLE ONE and that the company will be able to resolve the accounting issue and continue to perform well in the long run. He also notes that the company’s fundamentals remain strong, with a steady growth in its customer base and a loyal customer retention rate. This indicates that the company’s core business operations are still thriving. This acquisition will expand CABLE ONE’s presence in new markets and diversify its revenue streams. In conclusion, while the recent accounting issue may have caused some uncertainty among investors, KeyBanc analyst Brandon Nispel remains confident in CABLE ONE’s potential and maintains an overweight rating for the company’s stock. With strong fundamentals and a promising acquisition on the horizon, the future looks bright for CABLE ONE. Live Quote…

About the Company

Income Snapshot

Below shows the total revenue, net income and net margin for Cable One. More…

Cash Flow Snapshot

Below shows the cash from operations, investing and financing for Cable One. More…

Balance Sheet Snapshot

Below shows the total assets, liabilities and book value per share for Cable One. More…

Key Ratios Snapshot

Some of the financial key ratios for Cable One are shown below. More…

Analysis

As a financial analyst at GoodWhale, I have conducted a thorough analysis of CABLE ONE‘s performance and have identified several key points that highlight the company’s strengths and weaknesses. Firstly, based on our financial analysis, CABLE ONE has a high health score of 8/10. This indicates that the company has strong cashflows and low levels of debt, which makes it capable of sustaining its operations even in times of crisis. This is a positive sign for investors as it reflects the company’s financial stability and ability to weather potential market downturns. In terms of its financial metrics, CABLE ONE shows strength in several areas such as dividend, growth, and profitability. This means that the company is generating consistent returns for its shareholders, experiencing growth in its business, and managing its costs effectively. However, it may be seen as weak in terms of asset management, which could potentially be an area for improvement. Based on our analysis, we would classify CABLE ONE as a ‘rhino’ company, meaning that it has achieved moderate revenue or earnings growth. This suggests that the company may not have the explosive growth potential of a ‘unicorn’ company, but it is still a stable and reliable investment option. In my opinion, CABLE ONE may be of interest to investors who are looking for a stable and established company with strong financials. Its high health score and consistent performance make it an attractive choice for those seeking a reliable source of income or long-term growth potential. Additionally, its classification as a rhino company may appeal to conservative investors who prioritize stability over high-risk investments. More…

Peers

Cable One Inc is one of the leading telecommunications companies in the world. With a strong focus on innovative technology and excellent customer service, the company has established a strong presence in the market. Its main competitors are PT Link Net Tbk, HKBN Ltd, and Telenet Group Holding NV.

– PT Link Net Tbk ($IDX:LINK)

PT Link Net Tbk is a provider of high-speed broadband and cable television services in Indonesia. It has a market cap of 7.79T as of 2022 and a Return on Equity of 11.5%. The company offers its services to both residential and business customers. It has a wide network of over 1,000 kilometers of fiber optic cables that connect to more than 500,000 homes and businesses in Indonesia.

– HKBN Ltd ($SEHK:01310)

As of March 2022, HKBN Ltd had a market capitalization of $6.54 billion and a return on equity of 10.33%. HKBN Ltd is a telecommunications company that provides broadband, voice, and other communications services to residential and business customers in Hong Kong. The company has a fiber-to-the-home network that covers over 2.2 million residential homes and businesses in Hong Kong.

– Telenet Group Holding NV ($LTS:0GAF)

Telenet Group Holding NV is a leading provider of cable television, high-speed Internet, and fixed-line telephony services in Belgium. The company has a market capitalization of 1.68 billion as of 2022 and a return on equity of -91.64%. Telenet offers a wide range of services to its customers, including digital television, high-speed Internet, and fixed-line telephony. The company has a strong customer base and a large market share in Belgium.

Summary

KeyBanc has maintained its Overweight rating and $850.00 price target on shares of Cable One despite the company’s recent accounting issue. This indicates their confidence in the stock’s potential for growth. Cable One, a telecommunications company, has faced scrutiny over its accounting practices, but this has not changed KeyBanc’s view.

This suggests that they believe the issue is manageable and does not affect the company’s long-term outlook. Investors should take this analysis into consideration when making decisions about investing in Cable One.