CenturyLink (CTL): Merger Is Not Transformative, Keeping Sell Like Rating - Jefferies

November 1, 2016 7:10 AM EDT
Get Alerts CTL Hot Sheet
Price: $25.47 --0%

Rating Summary:
    6 Buy, 15 Hold, 5 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 9 | Down: 12 | New: 40
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Jefferies analyst, Mike McCormack, reiterated his Underperform rating on shares of CenturyLink, Inc. (NYSE: CTL) and cut his price target to $20 from $24.

Despite the announced merger with LVLT, the analyst remains cautious on shares of CTL. The deal can prove to be highly accretive but the combination falls short in transforming the business as the enterprise market remains highly competitive and price sensitive. Synergies and taxes should prove beneficial to the dividend near-term, but do not provide a path for long term sustainability.

For an analyst ratings summary and ratings history on CenturyLink, Inc. click here. For more ratings news on CenturyLink, Inc. click here.

Shares of CenturyLink, Inc. closed at $26.58 yesterday.

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