UPDATE: Piper Jaffray Initiates Coverage on Frontier Communications at Neutral

According to Piper Jaffray, Frontier Communications FTR coverage is initiated at Neutral. Piper Jaffray said that Frontier trades at a premium to its favorite name in the group, CenturyLink. Frontier has a very high dividend, sustainable today by a lower cash tax rate derived from current bonus depreciation rules. “We are initiating coverage of Frontier Communications with a Neutral rating and a $5 target price.” Frontier Communications closed yesterday at $5.01.