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UPDATE: Morgan Stanley Resumes Cincinnati Bell at Equal-Weight on IPO Stake

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Morgan Stanley resumed coverage of Cincinnati Bell (NYSE: CBB) with an Equal-weight rating.

Morgan Stanley noted, "Cincinnati Bell benefits from its 69% ownership stake in CyrusOne, but our estimates suggest that secular pressures at the core business may affect free cash flow generation and keep leverage levels above 3.0x, hampering management's ability to pay a regular dividend. Fioptics helps stabilize wireline revenues in 2013, but wireless substitution and cable competition drive revenues down at ~1.2% CAGR going forward. Meanwhile, the lack of an iPhone and an LTE network is likely to challenge subscriber trends, as roaming costs drive down margins ~200 bps per year."

Cincinnati Bell closed at $4.72 on Monday.

Latest Ratings for CBB

DateFirmActionFromTo
Dec 2016Raymond JamesDowngradesMarket PerformUnderperform
Oct 2016Gabelli & Co.UpgradesHoldBuy
Aug 2016Raymond JamesDowngradesOutperformMarket Perform

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Posted-In: Morgan StanleyAnalyst Color Initiation Analyst Ratings

 

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