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CABO: Future Upside Will Stem From Expanding Tech Support Service Margins

Update shared on 11 Dec 2025

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AnalystConsensusTarget's Fair Value
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1Y
-64.6%
7D
4.0%

Analysts have modestly reaffirmed their view on Cable One, keeping the price target effectively unchanged at approximately $162.25, as a stable discount rate, revenue growth, profit margin, and future P/E assumptions continue to support a steady valuation outlook.

What's in the News

  • Sparklight, a Cable One brand, is supporting the launch of TechAssist, an on-demand service that helps customers set up, troubleshoot, and optimize a wide range of connected devices including security cameras, gaming consoles, smart TVs, and other Wi Fi technology (Key Developments).
  • TechAssist offers three subscription plan levels starting at $10 per month, with higher tiers expanding coverage to repairs and replacements for home entertainment systems, computers, and smart home devices (Key Developments).
  • The top tier, TechAssist Complete, adds accidental damage protection for portable tech such as tablets and wearables, aiming to provide families with worry free device coverage (Key Developments).
  • All TechAssist plans include access to live, U.S. based experts seven days a week, with no limit on the number of support requests, targeting households that now average more than 20 connected devices (Key Developments).

Valuation Changes

  • Fair Value: Unchanged at approximately $162.25, indicating no adjustment to the model implied price target.
  • Discount Rate: Held steady at 12.5%, reflecting an unchanged view of Cable One's risk profile and required return.
  • Revenue Growth: Effectively unchanged at about minus 3.55%, signaling expectations for modest revenue contraction remain intact.
  • Net Profit Margin: Stable at roughly 8.65%, with only immaterial rounding differences in the updated estimate.
  • Future P/E: Maintained at about 9.76x, suggesting no change in the forward earnings multiple applied in the valuation.

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