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UPDATE: Bank of America Lowers PT on West Corp Following Loss of Key Client


According to a report published Monday, Bank of America analyst Sara Gubins maintained a Buy rating but lowered the price target on West Corporation (NASDAQ: WSTC) from $29 to $28. Despite strong 4Q13 results and revenue 2% above estimates, the loss of West's largest conferencing client is expected to have a major impact on 2014 EPS.

In the report, Bank of America stated, "We continue to like West's steady profile, complemented by high dividend & FCF yields (4% & 14%, respectively). West does not plan to increase the dividend in 2014. Our $28 price objective represents 8x 2015E adj. EBITDA (no change), or 10.3x adjusted 2015E EPS. This is a discount to peers on EV/EBITDA (8.9x 2015E) and EPS (13.9x)."

On Friday, West Corporation closed at $23.12.

Posted-In: Bank of America Sara Gubins West CorporationAnalyst Color Price Target Reiteration Analyst Ratings


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