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UPDATE: BMO Capital Downgrades CenturyLink

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On Monday, BMO Capital downgraded CentryLink (NYSE: CTL) from Outperform to Market Perform and raised the price target from $32 to $33.

Analyst Kevin Manning is concerned about CenturyLink Technology Solutions (CLTS) data hosting business “as CLTS's target customer is shifting from high-touch large enterprise to more regional and SMB CTL enterprise customers.”

Manning's channel checks indicate “some top Savvis sellers have left as a result of the Savvis salesforce being integrated into the CTL Salesforce.”

Revenue growth in high-speed internet and Prism TV could be negatively affected by data hosting capex and acquisition spending, according to Manning.

The analyst adjusted the 2014 EBITDA estimate from $7.112 billion to $7.085 billion.

Shares of CenturyLink are down 0.72 percent to $34.51 in Monday's trading.

Latest Ratings for CTL

DateFirmActionFromTo
Aug 2015CitigroupMaintainsNeutral
Jul 2015JefferiesUpgradesUnderperformHold
Jun 2015Raymond JamesUpgradesMarket PerformOutperform

View More Analyst Ratings for CTL
View the Latest Analyst Ratings

Posted-In: BMO Capital Kevin ManningAnalyst Color Downgrades Analyst Ratings

 

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