FBR Capital Maintains an 'Outperform' on PAETEC Holding (PAET); Strong 1Q11 Results: Valuation Remains Attractive

May 6, 2011 10:13 AM EDT
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Price: $5.37 --0%

Rating Summary:
    3 Buy, 3 Hold, 1 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 13 | Down: 14 | New: 11
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FBR Capital maintains an 'Outperform' on PAETEC Holding Corp. (NASDAQ: PAET), PT $6.

FBR analyst says, "We model an improving PAETEC-only (ex-Cavalier) revenue trajectory for 2011, as we believe that recent acquisitions should contribute to quality revenue growth and margin expansion. PAETEC is well positioned to inject growth into the underserved and underutilized Midwest region with the XETA acquisition. From a margin perspective, scalability opportunities from the acquisition of Cavalier are expected to drive margin expansion in 2011 exclusive of improvement in the core business. Revenue growth, along with EBITDA margin expansion, is a major positive catalyst for the shares."

For more ratings news on PAETEC Holding Corp. click here and for the rating history of PAETEC Holding Corp. click here.

Shares of PAETEC Holding Corp. closed at $3.50 yesterday.


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