UPDATE: Pivotal Research Group Initiates Buy, $5.50 on Frontier Communications; Negative Sentiment Misplaced
Pivotal Research Group initiates its coverage on Frontier Communications (NASDAQ: FTR) with a Buy rating and a price target of $5.50.
Pivotal Research Group comments, "The stock has underperformed the market and industry substantially over the past six months due to a series of earnings misses and a dividend cut. More recently, investor concerns around sustainability of the current dividend, 2013 capex levels related to video rollouts, and the ability of the company to meet its deleveraging plans and scheduled debt maturities. We believe that FTR's recent debt refinancing, its clarification on 2013 capex guidance, and the operational improvements in Q1 results should alleviate many of the concerns and the stock should outperform over the next year as the operational improvements continue and investors become more comfortable with the sustainability of the current dividend."
FTR closed at $3.93 on Friday.
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