Nomura Securities Maintains a 'Buy' on Frontier Communications (FTR); Opportunity In Wireline

Nomura Securities maintains a 'Buy' on Frontier Communications (NASDAQ: FTR) price target of $5.00.

Analyst, Mike McCormack, said, "Line-loss improvements could quickly transform outlook: Frontier’s revenue has been plagued by high customer attrition, highlighted by line loss. With ~70% of line loss tied to recently acquired Verizon (NYSE: VZ) states, and Frontier having been able to cut line loss in half in the one converted state, West Virginia, we think there is upside to line-loss projections in 2012. Trading at a discounted multiple and near-record high short interest, there is little optimism in FTR shares. We expect a combination of positive estimate revisions and multiple improvement will provide potential upside to shares. F12E EPS of $0.31 vs Street at $0.22."

For an analyst ratings summary and ratings history on Frontier Communications click here. For more ratings news on Frontier Communications click here.

Shares of Frontier Communications closed at $3.51 yesterday.

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