July 18, 2017 / 6:52 AM / 3 months ago

BUZZ-Exane: Altice US for M&A, Altice NV for valuation

** Exane BNP Paribas says Altice USA has proven US cable businesses can be run far more efficiently than previously thought and initiates at “outperform”; reinstates Altice NV at “outperform”

** Exane says performance ATUS has left peers Comcast and Charter “scrambling to explain why they can’t implement the savings ATUS has been able to extract”

** Brokerage believes ATUS will be actively involved in M&A with the possible outright acquisition of Charter as a “go big or go home” scenario; sets PT at $36 (13% upside)

** Exane sees more upside in Altice NV (20% on PT of EUR 25) and prefers over ATUS for the valuation arbitrage; adds that ATUS screens better for those seeking direct exposure to US consolidation upside

** ATUS +1% since its June IPO, losing steam after gains of 11.5% in first 2 trading days

** Altice shares +10% YTD, doing slightly better than France’s benchmark CAC 40 (+7.6%)

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