UPDATE: Deutsche Bank Starts Cincinnati Bell (CBB) at Hold
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Price: $3.51 +0.29%
Rating Summary:
3 Buy, 4 Hold, 2 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 21 | Down: 43 | New: 13
Rating Summary:
3 Buy, 4 Hold, 2 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 21 | Down: 43 | New: 13
Trade CBB Now!
(Updated - February 12, 2013 6:58 AM EST)
Deutsche Bank initiates coverage on Cincinnati Bell (NYSE: CBB) with a Hold. PT $5.50.
The firm comments, "While our PT implies 17% upside potential, all of this is through the expected share price appreciation of CyrusOne (NASDAQ: CONE), which is 69% owned by CBB. We otherwise view CBB's core telecom ops as fairly valued at 6x ‘13E EBITDA (in-line with traditional telco peers). In other words, we see no NT advantage to owning CONE through CBB. Over the LT, we expect that CBB will sell-down its stake in CONE in order to repay debt thereby boosting FCF that may fund a dividend. But, this could take 3-5 years, so we do not see any immediate catalyst related to a potential recapitalization of CBB."
For an analyst ratings summary and ratings history on Cincinnati Bell click here. For more ratings news on Cincinnati Bell click here.
Shares of Cincinnati Bell closed at $4.72 yesterday, with a 52 week range of $3.33-$5.89.
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Deutsche Bank initiates coverage on Cincinnati Bell (NYSE: CBB) with a Hold. PT $5.50.
The firm comments, "While our PT implies 17% upside potential, all of this is through the expected share price appreciation of CyrusOne (NASDAQ: CONE), which is 69% owned by CBB. We otherwise view CBB's core telecom ops as fairly valued at 6x ‘13E EBITDA (in-line with traditional telco peers). In other words, we see no NT advantage to owning CONE through CBB. Over the LT, we expect that CBB will sell-down its stake in CONE in order to repay debt thereby boosting FCF that may fund a dividend. But, this could take 3-5 years, so we do not see any immediate catalyst related to a potential recapitalization of CBB."
For an analyst ratings summary and ratings history on Cincinnati Bell click here. For more ratings news on Cincinnati Bell click here.
Shares of Cincinnati Bell closed at $4.72 yesterday, with a 52 week range of $3.33-$5.89.
Join StreetInsider.com FREE and get immediately alerted when news breaks on your stocks and other market items - JOIN NOW
*NEW - Download StreetInsider's FREE iPhone and iPad App - Click Here
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