Morgan Stanley Sees Ongoing Turnaround Story for Level 3 Communications

In a report published Monday, Morgan Stanley analyst Simon Flannery reiterated an Equal-Weight rating on Level 3 Communications LVLT. In the report, Morgan Stanley noted, “FY 2014 guidance suggests that Level 3 is beginning to benefit from its high operating leverage. Accelerating CNS revenue growth and expanding margins should drive meaningful FCF generation in 2014. While we like the ongoing turnaround, we see valuation as fair and maintain our EW.” Level 3 Communications closed on Friday at $36.75.