- WideOpenWest (WOW -0.9%) -- hovering slightly above its initial $17 price in last month's initial public offering -- has come in for strong bullishness as Wall Street analysts launch coverage.
- Six new Buys are in for the cable provider, which has the sixth-most customers in the U.S.
- Raymond James has opened coverage at Strong Buy with a price target of $21, saying the company should repeat others' success with an "edge-out" overbuilding strategy of extending into adjacent neighborhoods and markets. Its free cash flow growth is above industry average, the firm notes.
- SunTrust has the strongest price target of the new launches, at $24 (implying 37.7% upside).
- Meanwhile, Macquarie's Amy Yong (Outperform, $20 price target) says EBITDA margins will increase along with the decline of video penetration and the increase in broadband penetration. Leverage will fall to about 4.27x by 2019, from over 5x today, she writes.
- Now read: Avoid WideOpenWest's IPO
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