Citadel Securities Starts Frontier Communications (FTR) at Neutral; Merger Integration Challenge Makes This a 'Show Me' Story

Citadel Securities initiates coverage on Frontier Communications (NYSE: FTR) with a Neutral. PT $8.

Citadel analyst says, "We rate FTR Neutral with an $8 target, and see the stock as a “show me” story at this point, given the risk of continued merger integration challenges. While we think 2012 earnings could be better, we would prefer to wait for evidence that the merger integration process is back on track. We are also more cautious on Frontier’s longer-term outlook. Compared to CenturyLink, Frontier has less financial flexibility to pursue further M&A or business expansion into growth areas. Our revenue and EBITDA estimates for 2011 and 2012 are below the current consensus."

For more ratings news on Frontier Communications click here and for the rating history of Frontier Communications click here.

Shares of Frontier Communications closed at $8.07 yesterday.

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