November 14, 2017 / 8:40 AM / a year ago

Altice shares fall to three-year low on price target cuts

FILE PHOTO - The logo of cable and mobile telecoms company Altice Group is seen during a news conference in Paris, France, March 21, 2017. REUTERS/Philippe Wojazer

PARIS (Reuters) - Shares in telecoms and cable group Altice (ATCA.AS) fell on Tuesday, extending a losing run to touch their lowest level in more than three years, after brokers lowered their expectations for the stock.

Morgan Stanley slashed its price target by 34 percent to 20.50 euros and cut its cash flow estimates, while Kepler also reduced its target by 39 percent to 11 euros.

Altice shares, which have fallen for the last eight sessions in a row, were down 9.8 percent at 9.25 euros by mid-session trading, their lowest since early 2014. The stock is down by around 50 percent since the start of 2017.

Morgan Stanley said Altice’s cash flow would be affected by the company’s relatively high debt levels and recent share price slump.

On Nov. 10, Altice ousted Chief Executive Michel Combes and brought back founder Patrick Drahi as president, seeking to reassure investors.

Altice said earlier this month it had lost around 75,000 broadband customers in France in the third quarter, and its debt had reached 49.6 billion euros (£44.4 billion).

Reporting by Sudip Kar-Gupta; Editing by Mark Potter and Laurence Frost

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