CenturyLink (CTL) Potential Sale of Data Centers to Help Support Dividend, Restart Buybacks - Macquarie
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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.
Shares of CenturyLink, Inc. closed at $27.86 yesterday.
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