CenturyLink (CTL): Merger Is Not Transformative, Keeping Sell Like Rating - Jefferies
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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.
Shares of CenturyLink, Inc. closed at $26.58 yesterday.
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