D.A. Davidson Reiterates Buy Rating, $14.25 PT on Windstream Corporation
In a report published Friday, D.A. Davidson & Co. reiterated its Buy rating and $14.25 price target on Windstream Corporation (NASDAQ: WIN).
D.A. Davidson noted, “Reiterate our BUY rating. WIN derives 69% of its revenues from the growing areas of business and broadband—and the majority of its business revenues are from competitive business services with 2%-3% market share as opposed to incumbent business services. In 2013 we expect WIN to show flat revenues and 5%-6% EBITDA growth from synergies, giving investors much more confidence in the dividend. Our price target of $14.25 equates to a 7% yield and a 6.7x EV/EBITDA multiple on 2013 estimates. We would use the expected year-end weakness to BUY the stock.”
Windstream Corporation closed on Thursday at $8.41.
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