UPDATE: Stifel Nicolaus Cuts PT to $6 on Frontier Communications Following In-Line Results

Stifel Nicolaus maintained Frontier Communications FTR with a Neutral rating and lowered the price target from $4.75 to $4.25. Stifel Nicolaus noted, "Frontier reported an in-line 4Q12 with solid guidance for 2013, causing us to raise our 2013 FCF estimate, which wound up being below the low-end of company guidance. … 2013 guidance was solid, in our view, with FCF guidance of between $825 million and $925 million. We are conservatively positioning ourselves towards the low-end of that guidance range, however, even that assumption yields a payout ratio in 2013 of below 48%, with our payout ratio model forecasting a payout of just over 51% in 2014. 2014 is benefitted from an $80 million reduction in cash taxes due to a 50% bonus depreciation benefit in 2013." Frontier Communications closed at $4.02 on Thursday.
Market News and Data brought to you by Benzinga APIs
Comments
Loading...
Posted In: Analyst ColorPrice TargetAnalyst RatingsStifel Nicolaus
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!