UPDATE: Citigroup Downgrades CenturyLink to Neutral on Dividend Reduction

Citigroup downgraded CenturyLink CTL from Buy to Neutral and lowered the price target from $43.00 to $37.00. Citigroup noted, "We are reducing our rating on CTL to Neutral and our target price to $37, as CTL's long-term financial targets imply less cash flow generation relative to what we previously estimated over the next few years and dilutes the valuation support that we believe its prior dividend yield provided. Our rating revision is partly based on the after-market share price of ~$36, according to Factset, & we recognize the sudden change in dividend policy could result in further downside risk to CTL shares in the near-term." CenturyLink closed at $34.84 on Wednesday.