UPDATE: Deutsche Bank Initiates Coverage on CenturyLink with Hold Rating, $35 PT on Current Valuation

In a report published Tuesday, Deutsche Bank analyst Brett Feldman initiated coverage on CenturyLink

with a Hold rating and $35.00 price target. In the report, Feldman noted, “We are initiating coverage of CenturyLink (CTL) with a Hold rating and $35 PT. We view CTL as the best positioned operator in the traditional wireline services segment with the safest dividend and most attractive overall cash return policy. However, we believe that current valuation (6% dividend yield, 5.8x ‘13E EBITDA) appropriately balances these factors against an outlook for sustained pressures to margins and cash flows (even as the top line returns to growth) and a projected 1/3rd decline in Adjusted FCF over the next 3 years due to ramping cash taxes (as the benefits of bonus depreciation reverse).” CenturyLink closed on Monday at $36.16.