UPDATE: Pivotal Research Group Reiterates Buy Rating, Raises PT on Frontier Communications

In a report published Monday, Pivotal Research Group reiterated its Buy rating on Frontier Communications

, and slightly raised its price target from $5.50 to $6.00. Pivotal Research Group noted, “We are increasing our price target on FTR from $5.50 to $6.00 and reiterate our BUY rating. The bond refinancing in August, and the 8-K which FTR issued two weeks ago lowering guidance for 2013 cash taxes both incrementally lowered liquidity risk and improved the sustainability of FTR's current $0.40 dividend in our view. To reflect the improved risk profile, we are lowering the discount rate in our DCF analysis to 10% from 11%. All our other estimates are essentially unchanged. Our $6.00 price target implies 22% upside from current levels excluding dividends, and 30% including dividends.” Frontier Communications closed on Friday at $4.92.