UPDATE: Jefferies Initiates Level 3 Communications with Hold on Requirement for Growth
In a report published Wednesday, Jefferies analyst Thomas Seitz initiated coverage on Level 3 Communications (NYSE: LVLT) with a Hold rating and $22.00 price target.
In the report, Seitz noted, “Level 3 has a unique assortment of fiber assets spanning 450 cities across the Americas, Europe, and Asia, 100k intercity route-miles, 30k metro route-miles, 35k subsea route-miles, and ~350 data centers. In our view, beyond the obvious cost synergies, the October 2011 Global Crossing acquisition increased network reach, enhanced scale, improved service portfolio, and substantially boosted the balance sheet and credit profile. With the acquisition, the company pointed to $300M of cost synergies it expected to achieve in 18 months, which appears to be on schedule. Additionally, we believe Level 3 could also benefit from revenue synergies from multinational enterprises with its much more geographically diversified network.”
Level 3 Communications closed on Tuesday at $20.66.
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