Canaccord Genuity Remains Bullish after Meeting with Level 3 Communications (LVLT) Management

Canaccord Genuity reiterates a Buy rating and $65.00 price target on Level 3 Communications (NYSE: LVLT) after meeting with management. Analyst Gregory Miller believes that the company is now on track to potentially produce in excess on $1.0bn of FCF in 2016.

Miller commented, "Over the course of the past week we have had the opportunity to host a few days of meetings with senior management of Level 3 Communications that included CEO Jeff Storey and CFO Sunit Patel. With the company having successfully achieved the necessary milestones to demonstrate it is well on track to achieve its synergy targets with the tw telecom merger, we believe the team is now comfortable taking the time to meet with investors individually outside of the confines of the conference circuit. From the time Jeff Storey took over in 2Q13, the company has been focused on restructuring the company in such a way that they feel they can deliver consistently growing free cash flow after faltering for many years. With the integration of tw telecom, in addition to its internal changes, we believe the company is now on track to potentially produce in excess on $1.0bn of FCF in 2016 with growth thereafter. Currently priced at 9.8x 2016 EV/EBITDA, a discount to both Zayo Holdings and Cogent Communications, we continue to find the stock attractive for purchase."

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 $51.74 yesterday.

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