UPDATE: Macquarie Starts Lumos Networks (LMOS) at Neutral

(Updated - October 3, 2014 8:46 AM EDT)

Macquarie initiated coverage on Lumos Networks (NASDAQ: LMOS) with a Neutral rating and a price target of $18.00.

Analyst Kevin Smithen commented commented, "We are positive on shares of LMOS with 3 to 5 year view, as we see the company's aggressive Project Ark fiber upgrade plan producing significant financial returns over the long term, especially in FTTC and enterprise. However, given the recent share rally, we rate the shares Neutral because we are skeptical that the company is shopping itself currently as the most likely buyers are tied up with large deals and IPOs and also believe that there is risk to consensus 2015 estimates as legacy voice and data erosion continues. We value the company at $18 on a 2015 sum-of-the-parts, which increases to $23 in 2016, based on significant fiber EBITDA growth."

For an analyst ratings summary and ratings history on Lumos Networks click here. For more ratings news on Lumos Networks click here.

Shares of Lumos Networks closed at $16.55 yesterday.

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