Jefferies Raises Price Target on Windstream (WIN) to $6; Reiterates Underperform

Jefferies maintained an Underperform rating on Windstream (NASDAQ: WIN), and raised the price target to $6.00 (from $4.00), following the the CSAL monetization. Jefferies believes that management is taking the necessary steps to improve its competitive positioning. However, despite the improvements in Enterprise and Consumer, roughly 40% of WIN's revenue is tied to declining small business ILEC/CLEC, Carrier services, and regulatory revenue.

Analyst Scott Goldman commented, "We update estimates post the CSAL monetization, raising our price target to $6 to reflect the rise in the CSAL ownership stake in recent months. While the company is pursuing an appropriate strategy for its business, we believe valuation remains rich and the surprising outperformance year-todate gives too much credit for operational improvements. We maintain our Underperform rating on shares of WIN."

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

Shares of Windstream closed at $9.46 yesterday.

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