Nomura Securities Maintains a 'Neutral' on Frontier Communications (FTR); Reducing Price Target & Estimates

Nomura Securities maintains a 'Neutral' on Frontier Communications (NYSE: FTR) price target lowered to $6.50.

Nomura analyst, Mike McCormack, says, "Following disclosure at a recent investor conference, we are lowering our estimates to reflect a tempered outlook. Per company commentary, storm damage, slower revenue materialization, and expectations for billing conversions in 4Q11 lower the outlook for FCF by $75mn. We see a dividend cut as unlikely, but risk should not be ignored. We reduced our 2011E EPS to $0.24 from $0.27 and 2012E to $0.26 from $0.33. We cut our price target to $6.50 from $10.00, based on 6x terminal EBITDA (down from 8x)."

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 $6.27 yesterday.

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