Shenandoah Can't Survive On Its Own; Upside From Fiber Race
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Shenandoah Telecommunications faces challenges with weak earnings and low return on invested capital. An updated DCF analysis suggests a price target of $3.60, indicating a significant downside from current pricing. The stock requires over 30% revenue growth to justify its current price, and the quant rating remains a strong sell.
December 12, 2024 | 6:30 pm
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NEGATIVE IMPACT
Shenandoah Telecommunications is facing a potential 73% downside based on a DCF analysis, with a price target of $3.60. The stock's current price requires over 30% revenue growth, which is challenging given its weak earnings and low return on invested capital.
The DCF analysis indicates a significant downside risk for SHEN, with a price target of $3.60 compared to the current market price. The requirement for over 30% revenue growth is unrealistic given the company's weak earnings and low return on invested capital. The quant rating as a strong sell further supports the negative outlook.
CONFIDENCE 95
IMPORTANCE 90
RELEVANCE 100