Nomura Securities Maintains a 'Neutral' on Windstream (WIN); Cutting FY12 EPS After Q1 Results

Nomura Securities maintains a 'Neutral' on Windstream (NASDAQ: WIN) price target of $12.00.

Analyst, Mike McCormack, said, "Windstream missed our and consensus’ revenue and Adj. EBITDA estimates and has guided 2012 to the low end of the previously provided -1% to 1% revenue growth and $2.43bn-$2.50 Adj. EBITDA ranges. The revenue miss was related to a PAETEC revenue stream, which has been discontinued, and was an unexpected setback following a multi-year acquisition spree. While the PAETEC revenue write-off represents ~1% of revenue and ~1.5% of EBITDA guidance, it raises some questions regarding the company’s acquisitive growth strategy and the quality of the revenue it has acquired. We believe the ability to achieve the capital spending reduction is the single biggest risk to WIN shares. Trimming F12E EPS estimate from $0.59 to $0.54."

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 $10.09 yesterday.

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