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.