UPDATE: DA Davidson Upgrades Lumos Networks to Buy

DA Davidson has published a research report on Lumos Networks LMOS and has upgraded the company from Neutral to Buy. In the report, DA Davidson wrote, "We expect LMOS to report a 2% decline in Q3 sales compared to last year. The decline is due to regulatory reform that started in July. We are forecasting EBITDA of $20.5 million, down from the $21.1 million in Q2 due to regulatory reform and increased sales and field service hiring. Our EBITDA estimate is slightly below management's guidance of $21-$22 million, but should mark the low for the year. LMOS has increased its build rate on Fiber to the Tower (FTTT) contracts and has increased its sales presence to enterprise customers, which should lead revenue growth to pick up in Q4 and 2013." DA Davidson also raised the price target from $9.25 to $11 on Lumos Networks, which is currently trading up 0.64 percent from Monday's $7.79 closing price.