BTIG Downgrades Level 3 Communications (LVLT) to Neutral
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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.
Shares of Level 3 Communications closed at $54.05 yesterday.
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Related EntitiesBTIG, Walter Piecyk
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