Citi Research raises alarm on Optimum Communication as debt risks escalate
Citi Research has downgraded Optimum Communication (OPTU) to Sell with High Risk due to escalating debt risks and a bleak outlook. Analyst Michael Rollins cut the target price to $0.50, indicating a potential 42% downside. The company reported a $2.88B net loss and holds $25.5B in debt, raising concerns about financial distress. Rollins also lowered revenue estimates, citing challenges in debt reduction and a declining subscriber base, leading to a 10-day stock decline to an all-time low of $0.79.
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