UPDATE: Nomura Cuts PT to $8 on Windstream Corporation on Margin Outlook
Nomura reiterated its Reduce rating on Windstream Corporation (NASDAQ: WIN) and lowered its price target from $8.50 to $8.
Nomura noted, “We maintain our Reduce rating but are lowering our DCF-based target price from $8.50 to $8 due to lower long-term margins. Our 2013 Adj.EBITDA estimate falls from $2.51bn to $2.50bn on headwinds in Carrier revenue and changing business mix. Our 2013 EPS estimate declines from $0.65 to $0.62 as a result of lower EBITDA and higher D&A. We believe the company will maintain its $1.00 dividend in 2013 and continue to believe that the company‟s growth aspirations are misaligned with its high dividend payout strategy."
Windstream Corporation closed at $8.51 on Thursday.
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