UPDATE: Canaccord Inititates On Lumos Networks On Solid Near-Term Growth Strategy

In a report published Thursday, Canaccord Genuity analyst Greg Miller initiated a Buy rating on Lumos Networks LMOS and initiated a price target of $28.00. In the report, Canaccord Genuity says "We are launching coverage of Lumos Networks, a Mid-Atlantic provider of fiber optic-based communications services, with a BUY rating and a $28 price target that implies an 8.5x multiple on 2015E EBITDA. With its new management team last year following its spinoff from NTELOS, Lumos began an effort to transform the company from a legacy local telephone company to one that provides strategic data communications services to its established customers in addition to ones in new regional markets. Delivering fiber capacity to wireless carriers and new buildings in its core markets is central to that theme." Lumos closed on Wednesday at $24.02.