UPDATE: Bank of America Raises PT on Frontier Communications from $3.50 to $4.00

Bank of America maintained a Neutral rating on Frontier Communications

and raised its price target from $3.50 to $4.00. Bank of America noted, “Frontier posted a top line beat, better consumer voice access line trends, and a better than expected Adj. EBITDA margin. The flip side of these better optics was that they were propelled mostly by non-core strengths. Revenue beat because of stronger ‘Other' revenue which was higher on a mix of termination fees, agency income, wireless distributions, etc. Core voice and data revenue only met expectations despite higher prices and lower promotions which boosted revenue +$10m and may have negative implications for line performance in 2H.” Frontier Communications closed at $4.34 on Wednesday.