DA Davidson Reiterates a 'Buy' on Global Crossing (GLBC); Acquisition by LVLT on Track to Close by Year End

DA Davidson reiterates a 'Buy' on Global Crossing (NASDAQ: GLBC), PT increased from $40 to $48.

DA analyst said, "We think that, as LVLT’s revenues continue to increase sequentially and as EBITDA grows in 2011 and 2012, investors will become more comfortable with its leverage ratios and valuation. LVLT’s stock has held up very well during the recent market correction due to 54% of the stock being in the hands of longer term believers. Since we are still one of the few analysts with a Buy recommendation on Level 3 (Nasdaq: LVLT), we do not think the potential growth in revenues and EBITDA is discounted in the stock price. Our below consensus and below company projected revenue and EBITDA estimates for GLBC give us even more confidence that we are not stretching too far on our valuation target. Our new $48 target equates to 9x our pro-forma 2013 EV/EBITDA estimates for the combined LVLT and GLBC."

For more ratings news on Global Crossing click here and for the rating history of Global Crossing click here.

Shares of Global Crossing closed at $39.84 yesterday.

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