UBS Maintains a 'Buy' on Frontier Communications (FTR); Dividend Cut Disappointing
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Price: $4.42 --0%
Rating Summary:
9 Buy, 9 Hold, 3 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 16 | Down: 31 | New: 11
Rating Summary:
9 Buy, 9 Hold, 3 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 16 | Down: 31 | New: 11
Trade FTR Now!
UBS maintains a 'Buy' on Frontier Communications (NASDAQ: FTR) price target lowered from $9 to $5.
UBS analyst says, "FTR cut its dividend by 47% to $0.40/sh. Given better than expected 4Q results, positive commentary on trends and higher synergies, we are surprised by the timing and the magnitude of the cut. Based on mgmt’s outlook for ~$950M in FCF in 2012, this implies a 42% payout, the lowest in the peer group."
"In 2012, we expect revenues to decline 6.1% to $4.9B, EBITDA to fall 2.5% to $2.4B while FCF falls 8.0% to $1.0B. We expect to see improvement in 2H results vs. 1H as the completion of the integration helps revenue and expense trends." (UBS cuts FY12 EPS estimate from $0.33 to $0.28)
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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UBS analyst says, "FTR cut its dividend by 47% to $0.40/sh. Given better than expected 4Q results, positive commentary on trends and higher synergies, we are surprised by the timing and the magnitude of the cut. Based on mgmt’s outlook for ~$950M in FCF in 2012, this implies a 42% payout, the lowest in the peer group."
"In 2012, we expect revenues to decline 6.1% to $4.9B, EBITDA to fall 2.5% to $2.4B while FCF falls 8.0% to $1.0B. We expect to see improvement in 2H results vs. 1H as the completion of the integration helps revenue and expense trends." (UBS cuts FY12 EPS estimate from $0.33 to $0.28)
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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