TD Cowen Lowers Cable One Price Target to $142
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 day ago
0mins
Should l Buy CABO?
TD Cowen lowered the firm's price target on Cable One to $142 from $260 and keeps a Hold rating on the shares. The firm said they posted mostly in-line results, though Broadband ARPU came in lighter than expectations, essentially sacrificing price to mitigate sub losses. Gross add and churn trends are improving, but competitive threats also continue to increase.
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Analyst Views on CABO
Wall Street analysts forecast CABO stock price to rise
2 Analyst Rating
0 Buy
2 Hold
0 Sell
Hold
Current: 90.900
Low
145.00
Averages
202.50
High
260.00
Current: 90.900
Low
145.00
Averages
202.50
High
260.00
About CABO
Cable One, Inc. is a broadband communications provider. The Company provides residential customers with an array of broadband offerings including Gigabit speeds, advanced wireless fidelity (Wi-Fi), and video services. It provides services that are similar to those provided by cable companies, telephone companies and fiber providers, among others. Its three primary product lines include residential data, residential video, and business data. Its broadband plant generally consists of a fiber-to-the-premises or hybrid fiber-coaxial (HFC) network with ample unused capacity. It offers Sparklight Television (TV), an Internet protocol-based (IPTV) video service that allows customers with its Sparklight TV app to stream its video channels from the cloud. Its customers are located in seven states: Arizona, Idaho, Mississippi, Missouri, Oklahoma, South Carolina, and Texas. It provides services to approximately 1.1 million residential and business customers out of 2.8 million passings.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
TD Cowen Lowers Cable One Price Target to $142
- Price Target Reduction: TD Cowen has lowered Cable One's price target from $260 to $142 while maintaining a Hold rating, indicating that the company's performance was mostly in line with expectations, but the Broadband ARPU fell short, suggesting a sacrifice in pricing to mitigate subscriber losses.
- Earnings Performance: Cable One reported Q4 EPS of $1.35, a significant drop from $18.71 last year, highlighting pressure on profitability that could impact investor confidence moving forward.
- User Trends Improvement: While Cable One has seen improvements in gross adds and churn trends, increasing competitive threats could negatively affect future market share and profitability.
- Market Reaction: BNP Paribas downgraded Cable One from Neutral to Underperform, reflecting market concerns about the company's future outlook, which may lead investors to reassess their investment strategies.
See More
Cable One Reports Q4 2025 Earnings with Mixed Subscriber Trends
- Subscriber Growth Challenges: Cable One reported a decline of approximately 10,700 residential data customers in Q4 2025, despite improved connection activity, indicating ongoing pressure in a competitive market environment.
- Declining Financial Performance: Total revenues for Q4 were $363.7 million, a 6.1% year-over-year decrease, with residential and business data revenues falling by 4.2% and 1.3%, respectively, reflecting challenges in revenue growth.
- Stable Capital Expenditures: Capital expenditures for 2026 are expected to remain consistent with 2025 levels, as management plans to achieve cost and tax efficiencies through the integration of the $480 million MBI acquisition, demonstrating confidence in future growth.
- Mobile Business Pilot: The company launched a mobile pilot in six markets, with a broader rollout expected in late Q1, aiming to enhance customer relationships and increase ARPU, despite facing a highly competitive landscape.
See More
Cable One Q4 2025 Earnings Call Insights
- Subscriber Growth Trends: In Q4 2025, Cable One experienced a decline of approximately 10,700 residential broadband customers, indicating that despite improved connection activities, the overall net subscriber growth remains negative, reflecting challenges in a highly competitive market environment.
- Declining Financial Performance: Total revenues for Q4 2025 were $363.7 million, a 6.1% year-over-year decrease, with residential and business data revenues declining by 4.2% and 1.3%, respectively, highlighting pressure on revenue growth.
- Capital Expenditure and Debt Management: Capital expenditures for 2025 totaled $285.3 million, a 0.4% decrease year-over-year, as the company utilized strong operating cash flows and over $130 million from equity investment monetization proceeds to pay down $403.4 million in debt, demonstrating financial flexibility.
- Future Outlook and Strategy: The company anticipates continued competitive pressures in 2026, but through optimizing its product offerings and enhancing customer experience, Cable One aims to achieve higher market share and customer loyalty in the future.
See More
Cable One Appoints New CEO and Grants Equity Awards
- Executive Appointment and Equity Incentives: Cable One announced the appointment of James A. Holanda as CEO, granting him approximately $10 million in equity awards to attract him to the company, reflecting the company's commitment to attracting top executive talent.
- Equity Award Structure: The equity awards consist of 60% performance-based restricted stock units (PSUs) and 40% time-based restricted stock units (RSUs), designed to align with awards given to other executives, thereby enhancing team cohesion.
- Board Approval and Compliance: The equity awards have been approved by the Board of Directors and the Compensation and Talent Management Committee, complying with NYSE regulations, ensuring transparency and compliance in executive compensation practices.
- Future Outlook and Risk Disclosure: The press release includes cautionary statements regarding future vesting of equity awards and other forward-looking statements, indicating that these may be subject to various risks and uncertainties, urging investors to consider potential market fluctuations.
See More
Cable One Grants Equity Awards to New CEO James A. Holanda
- Equity Awards Granted: Cable One has granted equity awards valued at approximately $10 million to new CEO James A. Holanda, with 60% allocated to performance-based restricted stock units (PSUs) and 40% to time-based restricted stock units (RSUs), aimed at incentivizing his acceptance of the position and long-term performance.
- Board Approval: The equity awards were approved by the Board of Directors and the Compensation and Talent Management Committee, in reliance on the employment inducement exemption under NYSE's Listed Company Manual Rule 303A.08, ensuring compliance and transparency in corporate governance.
- Share Limitations: The maximum number of shares subject to the equity awards is capped at 169,000 shares, which safeguards shareholder interests while incentivizing executives, thus preventing excessive dilution of existing shares.
- Future Outlook: Although the company issued forward-looking statements indicating that the future vesting of equity awards may be subject to various risks and uncertainties, this move underscores the company's commitment to its executive team and its strategic significance for future business growth.
See More
Cable One Q4 Earnings Miss Expectations Significantly
- Disappointing Earnings: Cable One reported a Q4 GAAP EPS of -$1.35, missing expectations by $7.99, indicating significant challenges in profitability that could undermine investor confidence.
- Revenue Decline: The company's revenue of $363.74 million represents a 6.1% year-over-year decline, falling short of expectations by $4.85 million, reflecting struggles in revenue growth amid a competitive market environment.
- Rating Downgrade Impact: BNP has cut ratings on Cable One and Comcast due to increased fiber competition, which may heighten investor concerns regarding the company's future growth prospects and negatively impact stock performance.
- Viewership Boost: Despite the overall poor performance, ESPN's 'College Football Playoffs' drove cable viewership in January, indicating that specific content still holds appeal and may support future advertising revenue.
See More
TD Cowen Lowers Cable One Price Target to $142
- Price Target Reduction: TD Cowen has lowered Cable One's price target from $260 to $142 while maintaining a Hold rating, indicating that the company's performance was mostly in line with expectations, but the Broadband ARPU fell short, suggesting a sacrifice in pricing to mitigate subscriber losses.
- Earnings Performance: Cable One reported Q4 EPS of $1.35, a significant drop from $18.71 last year, highlighting pressure on profitability that could impact investor confidence moving forward.
- User Trends Improvement: While Cable One has seen improvements in gross adds and churn trends, increasing competitive threats could negatively affect future market share and profitability.
- Market Reaction: BNP Paribas downgraded Cable One from Neutral to Underperform, reflecting market concerns about the company's future outlook, which may lead investors to reassess their investment strategies.
See More
Cable One Reports Q4 2025 Earnings with Mixed Subscriber Trends
- Subscriber Growth Challenges: Cable One reported a decline of approximately 10,700 residential data customers in Q4 2025, despite improved connection activity, indicating ongoing pressure in a competitive market environment.
- Declining Financial Performance: Total revenues for Q4 were $363.7 million, a 6.1% year-over-year decrease, with residential and business data revenues falling by 4.2% and 1.3%, respectively, reflecting challenges in revenue growth.
- Stable Capital Expenditures: Capital expenditures for 2026 are expected to remain consistent with 2025 levels, as management plans to achieve cost and tax efficiencies through the integration of the $480 million MBI acquisition, demonstrating confidence in future growth.
- Mobile Business Pilot: The company launched a mobile pilot in six markets, with a broader rollout expected in late Q1, aiming to enhance customer relationships and increase ARPU, despite facing a highly competitive landscape.
See More
Cable One Q4 2025 Earnings Call Insights
- Subscriber Growth Trends: In Q4 2025, Cable One experienced a decline of approximately 10,700 residential broadband customers, indicating that despite improved connection activities, the overall net subscriber growth remains negative, reflecting challenges in a highly competitive market environment.
- Declining Financial Performance: Total revenues for Q4 2025 were $363.7 million, a 6.1% year-over-year decrease, with residential and business data revenues declining by 4.2% and 1.3%, respectively, highlighting pressure on revenue growth.
- Capital Expenditure and Debt Management: Capital expenditures for 2025 totaled $285.3 million, a 0.4% decrease year-over-year, as the company utilized strong operating cash flows and over $130 million from equity investment monetization proceeds to pay down $403.4 million in debt, demonstrating financial flexibility.
- Future Outlook and Strategy: The company anticipates continued competitive pressures in 2026, but through optimizing its product offerings and enhancing customer experience, Cable One aims to achieve higher market share and customer loyalty in the future.
See More
Cable One Appoints New CEO and Grants Equity Awards
- Executive Appointment and Equity Incentives: Cable One announced the appointment of James A. Holanda as CEO, granting him approximately $10 million in equity awards to attract him to the company, reflecting the company's commitment to attracting top executive talent.
- Equity Award Structure: The equity awards consist of 60% performance-based restricted stock units (PSUs) and 40% time-based restricted stock units (RSUs), designed to align with awards given to other executives, thereby enhancing team cohesion.
- Board Approval and Compliance: The equity awards have been approved by the Board of Directors and the Compensation and Talent Management Committee, complying with NYSE regulations, ensuring transparency and compliance in executive compensation practices.
- Future Outlook and Risk Disclosure: The press release includes cautionary statements regarding future vesting of equity awards and other forward-looking statements, indicating that these may be subject to various risks and uncertainties, urging investors to consider potential market fluctuations.
See More
Cable One Grants Equity Awards to New CEO James A. Holanda
- Equity Awards Granted: Cable One has granted equity awards valued at approximately $10 million to new CEO James A. Holanda, with 60% allocated to performance-based restricted stock units (PSUs) and 40% to time-based restricted stock units (RSUs), aimed at incentivizing his acceptance of the position and long-term performance.
- Board Approval: The equity awards were approved by the Board of Directors and the Compensation and Talent Management Committee, in reliance on the employment inducement exemption under NYSE's Listed Company Manual Rule 303A.08, ensuring compliance and transparency in corporate governance.
- Share Limitations: The maximum number of shares subject to the equity awards is capped at 169,000 shares, which safeguards shareholder interests while incentivizing executives, thus preventing excessive dilution of existing shares.
- Future Outlook: Although the company issued forward-looking statements indicating that the future vesting of equity awards may be subject to various risks and uncertainties, this move underscores the company's commitment to its executive team and its strategic significance for future business growth.
See More
Cable One Q4 Earnings Miss Expectations Significantly
- Disappointing Earnings: Cable One reported a Q4 GAAP EPS of -$1.35, missing expectations by $7.99, indicating significant challenges in profitability that could undermine investor confidence.
- Revenue Decline: The company's revenue of $363.74 million represents a 6.1% year-over-year decline, falling short of expectations by $4.85 million, reflecting struggles in revenue growth amid a competitive market environment.
- Rating Downgrade Impact: BNP has cut ratings on Cable One and Comcast due to increased fiber competition, which may heighten investor concerns regarding the company's future growth prospects and negatively impact stock performance.
- Viewership Boost: Despite the overall poor performance, ESPN's 'College Football Playoffs' drove cable viewership in January, indicating that specific content still holds appeal and may support future advertising revenue.
See More
