BWS Financial analyst Hamed Khorsand maintained a Hold rating on Shenandoah Telecommunications Co (SHEN – Research Report) today and set a price target of $20.00.
Hamed Khorsand’s Hold rating for Shenandoah Telecommunications Co. (SHEN) can be attributed to a variety of factors. Firstly, SHEN is in the midst of expanding its network footprint through the acquisition of Horizon Telecom for $385 million in cash and stock. This acquisition presents SHEN with access to more than 7,000 fiber miles in Ohio and its surrounding markets, which enhances its market presence.
Furthermore, SHEN is investing in a fiber buildout program projected to reach over 600,000 homes. The Horizon purchase amplifies SHEN’s geographic presence and is set to add an additional 100,000 passings by the end of 2026. Additionally, the financial aspect of the deal appears reasonable as SHEN is essentially paying around $51,000 per fiber mile, compared to a self-build cost of around $75,000. The acquisition’s primary goal is to enhance the network footprint and boost the company’s ability to acquire commercial customers, a contrast to SHEN’s predominantly residential customer base.
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Shenandoah Telecommunications Co (SHEN) Company Description:
Shenandoah Telecommunications Co. operates as a holding company, which engages in the provision of regulated and unregulated telecommunication services to end-user customers and other telecommunications providers. It offers voice, video and data communications services. It operates through the following segments: Wireless, Broadband and Tower. The Wireless segment provides digital wireless telephone and data network services. The Broadband segment provides broadband, video and voice services to residential and commercial customers in portions of Virginia, West Virginia, Maryland, and Kentucky, via fiber optic and hybrid fiber coaxial (HFC) cable. The Tower segment leases space on 225 owned cell towers. The company was founded in 1902 and is headquartered in Edinburg, VA.
Read More on SHEN:
- Shenandoah to acquire Horizon Telecom for $385M
- Shenandoah Telecommunications Company to Acquire Horizon Telcom
- Shenandoah Telecommunications Company Announces 2023 Annual Dividend
- Shenandoah Telecommunications Company to Hold its Third Quarter 2023 Earnings Call at 8:30 a.m. on Friday, November 3, 2023
