Level 3 Communications (LVLT) Receives Hold Rating, Shares Up 6%
February 12, 2010 7:20 PM
Collins Stewart analysts Greg Miller and Eric Z. Chu rated Level 3 Communications, Inc. (Nasdaq: LVLT) a Hold with a price target of $1.20.
The Collins Stewart analysts initiated coverage of Level 3 Communications on 19 October 2009 without issuing a rating at the time.
The analysts believed that the company would be under increased pressure in 2010 reduced their revenue growth targets from 1.1% to -5.8% and expected margins from 24.6% to 23%.
With the stock trading at 9.3x their revised 2010 EBITDA estimates, the analysts said that was the highest among a group that included tw telecom inc. (Nasdaq: TWTC), PAETEC Holding Corp. (Nasdaq: PAET) and Global Crossing Ltd. (Nasdaq: GLBC), all of which had better growth prospects than Level 3 Communications.
Level 3 Communications' 52 week price range is 60 cents to $1.77.
The stock ended trading on Friday at $1.38, up more than 6% for the day.
