Jefferies Keeps "Buy" On Frontier Communications (FTR) After Dividend Cut, Trims Target

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Jefferies reiterated its Buy rating but cut its price target on Frontier Communications (NASDAQ: FTR) from $7 to $6 after Thursday's 47% dividend cut.

The firm comments, "Given a sustained dividend yield in excess of 15%, we believe this was widely expected. We view the move as prudent, and believe returns can accrue to equity investors via de-levering and the still substantial ~9% dividend yield (40% payout ratio). We maintain Buy rating, PT to $6."

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

Shares of Frontier Communications closed at $4.46 yesterday, with a 52 week range of $3.81-$9.52.

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