Communication Services Stocks Shine with Altice USA and Cogent Communications

Analysts at Benchmark Co. and UBS maintain bullish sentiments on Altice Usa (ATUS) and Cogent Comms (CCOI) respectively. Benchmark Co.'s Matthew Harrigan predicts a price target of $5.00 for ATUS, while UBS' Chris Schoell sets a price target of $50.00 for CCOI. The analysts suggest a Hold and Moderate Buy analyst consensus rating for ATUS and CCOI respectively, with average price targets of $2.75 and $54.50, indicating potential upside of 29.1% and 59.4% respectively.

Title: Analysts Bullish on Altice USA and Cogent Comms

Analysts at Benchmark Co. and UBS maintain bullish sentiments on Altice Usa (ATUS) and Cogent Comms (CCOI) respectively. Benchmark Co.'s Matthew Harrigan predicts a price target of $5.00 for ATUS, while UBS' Chris Schoell sets a price target of $50.00 for CCOI. The analysts suggest a Hold and Moderate Buy analyst consensus rating for ATUS and CCOI respectively, with average price targets of $2.75 and $54.50, indicating potential upside of 29.1% and 59.4% respectively.

Altice USA, a major broadband, video, and mobile service provider, reported its second-quarter 2025 results, revealing a mixed performance. Revenue declined by 4.2% year-over-year to $2.15 billion, falling short of analyst estimates by 0.19% [2]. The company reported a net loss of $96.3 million, a significant decline from the $15.4 million profit in the same period last year. Earnings per share (EPS) fell to $0.21, missing analyst estimates by $0.19 [2].

Despite the revenue and earnings decline, there were some positive signs. Free cash flow turned positive at $28 million, indicating a recovery from the previous year's negative cash flow. The company also reported strong growth in its fiber-to-the-home (FTTH) service, with a 53% year-over-year increase in total fiber customers to 663,000. Additionally, the company added 38,000 new mobile lines, reaching a total of 546,000 mobile lines [2].

Cogent Comms, a provider of global data center and colocation services, has received a bullish outlook from UBS analyst Chris Schoell. Schoell has set a price target of $50.00 for CCOI, suggesting a significant upside potential of 59.4% from the current price [2]. This optimism is based on the company's strong performance in the data center and colocation services market, driven by the increasing demand for cloud services and data storage solutions.

The analysts' bullish sentiments are based on the companies' strategic positioning and growth prospects. Altice USA's focus on expanding its fiber network and accelerating mobile growth is expected to drive future revenue growth. Cogent Comms' strong market position and the growing demand for data center services are also seen as positive factors for the company's future performance.

However, investors should be aware of the risks associated with these companies. Altice USA faces high financial leverage and ongoing subscriber losses, which could impact its financial performance. Cogent Comms' reliance on the data center market and potential regulatory risks also need to be considered.

In conclusion, the bullish sentiments from Benchmark Co. and UBS analysts provide a positive outlook for Altice USA and Cogent Comms. However, investors should carefully evaluate the risks and potential upside before making investment decisions.

References:
[1] https://finance.yahoo.com/news/altice-usa-second-quarter-2025-120430618.html
[2] https://www.nasdaq.com/articles/altice-usa-atus-q2-revenue-falls-4