UPDATE: BMO Capital Downgrades CenturyLink
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
|Mar 2015||DA Davidson||Upgrades||Underperform||Neutral|
|Feb 2015||Goldman Sachs||Downgrades||Neutral||Sell|
|Nov 2014||DA Davidson||Maintains||Underperform|
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