UPDATE: Bank of America Initiates West Corporation with Buy on Solid Dividend, Attractive Cash Flow

In a report published Wednesday, Bank of America analyst Sara Gubins initiated coverage on West Corporation

with a Buy rating and $28.00 price target. In the report, Gubins noted, “West offers a solid dividend (4.3% yield) and attractive cash flow (12% yield). We view it as a steady, low-single digit top line growth business, with double-digit net income growth in 2013 and 2014 as West de-levers post IPO. West has transitioned from a labor-intensive communication and agent-based model to higher margin low-labor-intensity platform-based model via acquisition. We would expect future acquisitions to add to growth, though this is not incorporated into our estimates.” West Corporation closed on Tuesday at $21.00.