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