PARIS, Sept 18 (Reuters) - Shares in Altice, the acquisitive telecoms and cable group founded by billionaire Patrick Drahi, rose on Monday after Deutsche Bank analysts upgraded their rating on the stock to “buy” from “hold”.
Altice NV shares were up 0.8 percent in early trading.
The Deutsche Bank team said the upgrade partly reflected valuations, following a recent drop in Altice shares, and reassurances that Altice might not overstretch itself regarding any U.S. takeover deals.
Earlier this month, Altice executives said they would be patient over any future takeover deals.
“We are encouraged that cash returns have commenced with a 1 billion euros buyback through to August 2018. We are also reassured by a management commitment that the company would not become ‘stretched’ by U.S. M&A,” wrote Deutsche Bank.
“The risk of deals and funding thereof remains but now appears deferred, hopefully to when valuations are more appealing,” added the Deutsche team. (Reporting by Sudip Kar-Gupta; Editing by Mark Potter)