Frontier Communications (FTR) PT Bumped Higher at Nomura Post Q1

Nomura Securities analyst Adam Ilkowitz bumped his price target on Buy-rated Frontier Communications (NASDAQ: FTR) to $6.00 (from $5.50) following Q1 results.

Ilkowitz comments, "Frontier reported 1Q14 results that were worse than expected, with revenue and Adj. EBITDA missing both Nomura and consensus expectations. We believe the better Residential customer net adds, while currently dilutive to ARPC, will lead to better revenue results over time as they are upsold. Revenue of $1.15bn missed our consensus-matching expectation of $1.17bn, due to both weaker Residential and Business results. Customer results improved, which should lead to revenue stability. We are lowering our 2014E Adj. EBITDA by 2.6% to $2.13bn to reflect lower Residential and Business revenue, but the FCF outlook increases from $720mn to $769mn."

The firm cut FY14E EPS from $0.20 to $0.18; FY15E EPS from $0.24 to $0.25

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 $5.96 yesterday.

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