Cable One (CABO) PT Lowered to $881 at KeyBanc

KeyBanc analyst Brandon Nispel lowered the price target on Cable One (NYSE: CABO) to $881.00 (from $900.00) while maintaining a Overweight rating.

The analyst commented, "We believe CABO has the most potential to grow Broadband subscribers due to its 35% residential penetration, vs. peers 40%+. While we think penetration can increase toward peers, we believe it will likely come at the expense of ARPU, which may not be linear, and creates NT risks. Despite the macro/competitive environment, we think CABO should be able to grow Broadband subscribers, given limited ACP exposure. Further, CABO's capital intensity should be lower, resulting in FCF growth. Estimate changes - We adjust our expense estimates for 1Q based on disclosures in CABO's 10-K. For '24, we lower our Broadband subscriber estimates wholly as a result of our view toward ACP. CABO PT to $881, ~8x our 2025 adj. EBITDA ex-items, vs. the historical avg of 11.6x, and reflects our lowered estimates."

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