Market Overview

UPDATE: Pivotal Research Group Initiates Level 3 Communications at Buy on Cash Flow Inflection

Related LVLT
Industry Leaders Unite To Form Streaming Video Alliance
Level 3 Announces Pricing of Private Offering Of Senior Notes
Level 3 Scores $5.7B Deal for TW Telecom (Fox Business)

Pivotal Research Group initiated coverage on Level 3 Communications (NYSE: LVLT) with a Buy rating and a $30 price target.

Pivotal Research Group noted, "We are initiating coverage of LVLT with a BUY rating and a $30 price target. We think that strong bookings over the past few quarters will translate into acceleration in Core Network Services revenue in Q4 '12 and 2013. GBLC deal synergies appear on schedule and should help drive a 200 bps improvement in EBITDA margin in 2013 vs. 2012. Along with lower interest costs on LVLT's debt, the improved topline and EBITDA trends will help LVLT reach a key inflection point in generating positive free cash flow for full year 2013 based on our estimates. In the shorter term, current consensus for Q4 adjusted EBITDA is already below the midpoint of management guidance, so the risk/reward for the stock heading into Q4 appears favorable in our view."

Level 3 Communications closed at $23.92 on Wednesday.

Latest Ratings for LVLT

DateFirmActionFromTo
Nov 2014MacquarieDowngradesOutperformNeutral
Nov 2014CitigroupMaintainsBuy
Nov 2014JefferiesMaintainsBuy

View More Analyst Ratings for LVLT
View the Latest Analyst Ratings

Posted-In: Pivotal Research GroupAnalyst Color Initiation Intraday Update Analyst Ratings

 

Related Articles (LVLT)

Around the Web, We're Loving...

Get Benzinga's Newsletters