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UPDATE: Morgan Stanley Resumes Cincinnati Bell at Equal-Weight on IPO Stake

Related CBB
Events for the Week of Sept. 15-19th
Earnings Scheduled For August 7, 2014

Morgan Stanley resumed coverage of Cincinnati Bell (NYSE: CBB) with an Equal-weight rating.

Morgan Stanley noted, "Cincinnati Bell benefits from its 69% ownership stake in CyrusOne, but our estimates suggest that secular pressures at the core business may affect free cash flow generation and keep leverage levels above 3.0x, hampering management's ability to pay a regular dividend. Fioptics helps stabilize wireline revenues in 2013, but wireless substitution and cable competition drive revenues down at ~1.2% CAGR going forward. Meanwhile, the lack of an iPhone and an LTE network is likely to challenge subscriber trends, as roaming costs drive down margins ~200 bps per year."

Cincinnati Bell closed at $4.72 on Monday.

Latest Ratings for CBB

DateFirmActionFromTo
Jul 2014Bank of AmericaDowngradesNeutralUnderperform
Jan 2014Stephens & Co.Initiates Coverage onOverweight
Dec 2013Piper JaffrayTerminatesNeutral

View More Analyst Ratings for CBB
View the Latest Analyst Ratings

Posted-In: Morgan StanleyAnalyst Color Initiation Analyst Ratings

 

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