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Bank of America Reiterates Buy Rating, $38 PT on CenturyLink on Wireline Stocks

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In a report published Wednesday, Bank of America analyst David W. Barden reiterated his Buy rating and $38.00 price target on CenturyLink (NYSE: CTL).

In the report, Barden noted, “We view yield-based wireline stocks as the equivalent of equity bonds, where the required return (yield) is a function of relative risk (FCF payout ratio). Within this framework, CTL screens positively among yield stories, at a 6.7% yield from a 44% 2014E payout ratio. Our PO, which has an assumed yield of 5.7%, reflects the company's improving top-line trajectory and greater-than-average dividend coverage.”

CenturyLink closed on Tuesday at $34.38.

Latest Ratings for CTL

DateFirmActionFromTo
Jul 2016Morgan StanleyDowngradesEqual-weightUnderweight
Jul 2016MacquarieInitiates Coverage onNeutral
Jun 2016Evercore ISI GroupInitiates Coverage onHold

View More Analyst Ratings for CTL
View the Latest Analyst Ratings

Posted-In: Bank of AmericaAnalyst Color Reiteration Analyst Ratings

 

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