Drexel Hamilton Maintains a 'Buy' on SureWest Communications (SURW); Google Fiber: Friend or Foe?

January 23, 2012 12:04 PM EST
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Price: $21.63 --0%

Rating Summary:
    1 Buy, 1 Hold, 1 Sell

Rating Trend: = Flat

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    Up: 30 | Down: 30 | New: 23
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Drexel Hamilton maintains a 'Buy' on SureWest Communications (NASDAQ: SURW) price target of $15.00.

Analyst, Barry M. Sine, said, "Google’s (Nasdaq: GOOG) plans to build a fiber network in Kansas City, KS and MO are creating concern for SureWest investors...SureWest operates in nearby Johnson County, but has only a small number of business customers in the Wyandotte County, KS market Google is targeting...Google has made its public policy statement in announcing this network, but could suffer a black eye if it encounters further delays and problems...Further problems would only prove the point of telecom carriers, who oppose open access to their networks, that constructing and operating telecom networks is extremely difficult, and carriers should earn a fair return for their efforts."

"We see two potential positives for SureWest. It could either be acquired by Google, as Google did with Motorola Mobility, or it could become a tenant on Google’s network using it as an inexpensive way to significantly expand its footprint."

For an analyst ratings summary and ratings history on SureWest Communications click here. For more ratings news on SureWest Communications click here.

Shares of SureWest Communications closed at $13.67 yesterday.

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