UPDATE: Bank of America Resumes Cincinnati Bell at Underpeform on Comparative Risk/Return
Bank of America resumed coverage on Cincinnati Bell (NYSE: CBB) with an Underperform rating and announced a $4.25 price objective.
Bank of America noted, "For the past 2.5 years CBB has been focused on milking cash from its wireline and wireless businesses to fund the expansion of its captive CyrusOne data center subsidiary. These efforts culminated in CONE's successful IPO on January 17, 2013. Although CBB retains a 69% non-controlling ownership stake in CONE, the equity story is once again primarily that of investment through periodic stock sales over a period of years will facilitate gradual deleveraging, but with no dividend yield and limited prospects for growth, there are preferable risk/return opportunities like CenturyLink among wireline-centric comparables."
Cincinnati Bell closed at $4.72 on Monday.
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