Wells Fargo Resumes Coverage on CenturyTel (CTL) with an Outperform
CTL Hot Sheet
Rating Summary:9 Buy, 4 Hold, 0 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 16 | Down: 7 | New: 23
Wells Fargo resumes coverage on CenturyTel, Inc. (NYSE: CTL) with an Outperform rating. Valuation Range $38-40.
Wells analyst says, "In our view, CTL provides investors with an attractive (and safe) dividend, low payout ratio, achievable guidance and an attractive valuation. While we acknowledge there are overhangs in the RLEC sector with continued access line losses and regulatory unknowns, we believe the recently purchased Embarq properties will serve CTL well. In our view, CTL is well positioned to achieve and possible exceed our (and Street) EPS estimates for 2009 and 2010."
"CTL has outlined it expects to achieve $475MM in total synergies from the Embarq acquisition within 24-36 months. Having followed Embarq, we believe this synergy guidance is very achievable. CTL expects combined 2009 diluted EPS of $3.20 - $3.30. We believe this too is very achievable. Based on our assumption that cost synergies will continue to be realized sooner vs. later as well as the fact that it is well positioned to realize some tangible revenue synergies, we believe there may be potential upside to this guidance."
To see more analyst ratings on CTL Click Here.
CenturyTel, Inc., together with its subsidiaries, operates as an integrated communications company.
Wells analyst says, "In our view, CTL provides investors with an attractive (and safe) dividend, low payout ratio, achievable guidance and an attractive valuation. While we acknowledge there are overhangs in the RLEC sector with continued access line losses and regulatory unknowns, we believe the recently purchased Embarq properties will serve CTL well. In our view, CTL is well positioned to achieve and possible exceed our (and Street) EPS estimates for 2009 and 2010."
"CTL has outlined it expects to achieve $475MM in total synergies from the Embarq acquisition within 24-36 months. Having followed Embarq, we believe this synergy guidance is very achievable. CTL expects combined 2009 diluted EPS of $3.20 - $3.30. We believe this too is very achievable. Based on our assumption that cost synergies will continue to be realized sooner vs. later as well as the fact that it is well positioned to realize some tangible revenue synergies, we believe there may be potential upside to this guidance."
To see more analyst ratings on CTL Click Here.
CenturyTel, Inc., together with its subsidiaries, operates as an integrated communications company.
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