UPDATE: Citigroup Downgrades Frontier Communications to Sell on Cash Flow Pressure

Citigroup downgraded Frontier Communications FTR from Neutral to Sell and lowered the price target from $5.00 to $3.50. Citigroup commented, "We are reducing our rating on Frontier from Neutral to Sell with a downwardly revised target price of $3.50 based on our increasing concerns that the company will face further cash flow pressure over the next few years from the combination of: 1) continued erosion of high-margin legacy revenues; 2) elevated marketing costs to retain customers & improve its broadband marketshare; and 3) increasing competition for fiber-to-the-tower deployments." Frontier Communications closed at $4.50 on Wednesday.