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UPDATE: Goldman Sachs Downgrades Windstream to Sell; Mix Shift to Pressure Margins

Related WIN
How Has Windstream Holdings, Inc. Performed Since Announcing REIT Conversion Plan?
Earnings Scheduled For August 7, 2014

Goldman Sachs reduced its rating on Windstream (NASDAQ: WIN) from Neutral to Sell and lowered its price target from $11.50 to $7.50.

Goldman Sachs said, "We downgrade shares of WIN to Sell with a 12-month PT of $7.50, representing 9% downside from current levels. WIN's revenue transition poses a threat to long term margins, particularly as PAET synergies diminish through early 2014; we believe the company will be unable to sufficiently cut costs to maintain profitability. In addition, significant dividend headwinds remain; we believe management is unlikely to cut in 2013, though a challenging path to delevering suggests a reduction could be a more prudent approach."

Windstream closed at $8.22 on Thursday.

Latest Ratings for WIN

DateFirmActionFromTo
Aug 2014DA DavidsonDowngradesBuyNeutral
Jul 2014CitigroupMaintainsNeutral
Jul 2014NomuraUpgradesReduceNeutral

View More Analyst Ratings for WIN
View the Latest Analyst Ratings

Posted-In: Goldman SachsAnalyst Color Downgrades Pre-Market Outlook Analyst Ratings

 

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