Goldman Sachs Downgrades Windstream (WIN) to Sell, Sees Margin Pressure

Goldman Sachs downgraded Windstream (NASDAQ: WIN) from Neutral to Sell with a price target of $7.50 (from $11.50), suggesting 9% downside.

"We believe WIN's revenue transition poses a threat to the long-term margins of the business, particularly as synergies dissipate in 2013-2014," the analyst said. "Our margin estimates for 2013 and 2014 are 30 and 110 bps lower than consensus. In
addition, WIN’s elevated dividend payout poses a significant overhang to shares and limits the company’s ability to delever to targeted levels."

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 $8.18 yesterday.

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