Jefferies Remains Sidelined on FairPoint Communications (FRP) as In-Line 1Q Financials Pair with Strong Subscriber Results

Jefferies maintained a Hold rating on FairPoint Communications (NASDAQ: FRP), and cut the price target to $15.00 (from $18.00), following the company's 1Q earnings report. FRP reported in-line financial results with revenues of $206.8mn.

Analyst Mike McCormack commented, "FRP reported strong 1Q subscriber results, though financials were in-line with expectations. Citing product and customer service improvement, broadband adds of 193 (vs. est of an 823 loss) put the company on track to deliver positive broadband subs in 2016. Revenue of $206.8mn was in-line, while adjusted EBITDA of $61.9mn was ahead of ests as cost savings initiatives drove 120bps of margin expansion. Management reaffirmed the prior 2016 outlook."

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

Shares of FairPoint Communications closed at $13.50 yesterday.

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