Wells Fargo Starts Consolidated Communications (CNSL) at Outperform; SureWest Acquisition Very Favorable

Wells Fargo initiates coverage on Consolidated Communications (NASDAQ: CNSL) with an Outperform. PT range $19.50-22.00.

Analyst, Jennifer M. Fritzsche, said, "We very much favor the SureWest consolidation. In our view, with this move CNSL is shedding the skin of the RLEC model and making the business more fiber centric. We see this as a as a positive strategy for the company and the stock's future valuation."

"Our new pro forma estimates for 2012 revenue, EBITDA, and EPS are $622.9MM, $270.8MM, and $0.10, respectively. Our estimates for FY2013 revenue, EBITDA and EPS estimates are $628.6MM, $284.6MM, $0.66, respectively."

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

Shares of Consolidated Communications closed at $15.32 yesterday.

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