CenturyLink (CTL) Potential Sale of Data Centers to Help Support Dividend, Restart Buybacks - Macquarie

September 12, 2016 8:57 AM EDT
Get Alerts CTL Hot Sheet
Price: $25.26 --0%

Rating Summary:
    6 Buy, 15 Hold, 5 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 29 | Down: 29 | New: 6
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An imminent sale of CenturyLink's (NYSE: CTL) data centers in NA, Europe, and Asia is expected to four private equity firms, Macquarie analyst Amy Yong noted citing multiple sources.

The assets could fetch ~US$2.5bn+ with the process likely to conclude by year-end, the analyst noted.

Yong said immediate benefits include increasing financial capacity to support the dividend, restart its robust buyback program, and delever. That said, the analyst said this does not structurally change the growth-profile of the company.

The firm fined tuned estimates and trimmed their price target to $30 from $31 as a results. The firm maintained a Neutral rating.

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 $27.86 yesterday.

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