Nomura Securities Maintains a 'Buy' on CenturyLink (CTL); Analyst Day Provides Relief to M&A Speculation

June 13, 2012 8:41 AM EDT
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Price: $25.26 --0%

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Nomura Securities maintains a 'Buy' on CenturyLink, Inc. (NYSE: CTL) price target of $45.00.

Analyst Mike McCormack, said, "Yesterday’s CenturyLink Analyst Day was focused on the opportunity for revenue improvement, and provided some relief to constant M&A speculation. Management commented that transformative M&A isn’t in the company’s near future, and identified broadband expansion and enhancement, PrismTV, Fiber-to-the-Tower, and managed hosting and cloud services as growth initiatives. The company provided no update on increased returns to shareholders, but commented that ideal target leverage would be between 2.0x and 2.5x (Net debt/LTM EBITDA). Even without incremental returns to shareholders, CTL’s valuation, dividend yield and FCF payout is attractive compared to peers."

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 $37.38 yesterday.

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