UPDATE: Oppenheimer Upgrades Level 3 Communications (LVLT) to Outperform
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(Updated - October 28, 2016 9:40 AM EDT)
"LVLT has restructured itself in the last few years and now has operational/financial flexibility on FCF, and we see accelerating growth in 2017. We also view a possible merger of CTL/LVLT (reported by The WSJ) as a powerful combination/see synergies between $1B and $2B and FCF accretion over 30% in the next three years. We believe CTL will be the surviving company and see LVLT shareholders receiving a premium but also sharing in synergies and value creation. We recognize the downside risk of a deal not materializing, but believe LVLT's FCF profile/flexibility supports a $60/share valuation," said Horan.
Shares of Level 3 Communications closed at $51.87 yesterday.
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