UPDATE: Bank of America Downgrades Rating to Underperform, Lowers PO to $5.50 on Alaska Communications

A report from Bank of America downgrades its rating to Underperform and lowers its price objective from $8 to $5.50 on Alaska Communications

. The report states, “Alaska Communications currently pays an $0.86 annual dividend equating to an 11.7% yield which we believe underpins the value of ALSK's equity which trades at 6.8x '12 EBITDA vs. a high-yield peer average of 6.0x. The company shared at its 3Q results conference call that its Board is reviewing its dividend policy as a function of ‘upcoming competitive dynamics for wireless and the uncertainty of long-term USF funding'. This issue will overhang the stock until a final decision is reached”. ALSK closed yesterday at $7.38.