BTIG Downgrades Level 3 Communications (LVLT) to Neutral

October 31, 2016 2:51 PM EDT
Get Alerts LVLT Hot Sheet
Price: $58.84 +0.17%

Rating Summary:
    15 Buy, 13 Hold, 0 Sell

Rating Trend: Down Down

Today's Overall Ratings:
    Up: 13 | Down: 22 | New: 54
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BTIG downgraded Level 3 Communications (NYSE: LVLT) from Buy to Neutral. Analyst Walter Piecyk said he doesn't expect at competing bid.

"We downgrade Level 3 to Neutral as we do not expect a competing bid to top CenturyLink’s lofty take-out price, which valued Level 3 at 11.6x our 2016 EBITDA estimate. In addition, we are incrementally concerned about the downside to Level 3′s stock if the deal does not close as Level 3′s core business continues to struggle as evidenced by its inability to return the North American Enterprise business back to sequential revenue growth. We do not assign price targets to Neutral rated stocks, so we removed our prior $63 price target. We expect Level 3′s stock to trade relative to the fundamentals of the combined company and process towards closing the deal in late 2017," said Piecyk.

For an analyst ratings summary and ratings history on Level 3 Communications click here. For more ratings news on Level 3 Communications click here.

Shares of Level 3 Communications closed at $54.05 yesterday.

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