Jefferies Cuts Price Target on Level 3 Communications (LVLT) to $58; Reiterates Buy
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Jefferies maintained a Buy rating on Level 3 Communications (NYSE: LVLT), and cut the price target to $58.00 (from $63.00), ahead of the company's 3Q earnings report. Management commentary suggests sequential growth is unlikely to meet the 1.5-2.0% standard investors have come to expect. Key to the quarter will be the level of growth, with expectations seemingly dropping to sub-1%.
Analyst Scott Goldman commented, "We update estimates ahead of earnings, tempering N. American enterprise expectations for the quarter and beyond. While we believe investor expectations have come down in recent weeks, visibility into the growth trajectory is limited. In our view, the risk of slowing growth is largely priced in, with modest downside risk into the print. However, we remain confident in LVLT's attractive FCF growth story with the potential for accretive M&A or buybacks."
Shares of Level 3 Communications closed at $46.09 yesterday.
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Create E-mail Alert Related CategoriesAnalyst Comments, Analyst EPS Change, Analyst PT Change
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