Level 3 Communications (LVLT) Finally Turned the Corner, Macquarie Says; PT Raised
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Price: $53.63 --0%
Rating Summary:
14 Buy, 12 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 11 | Down: 12 | New: 13
Rating Summary:
14 Buy, 12 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 11 | Down: 12 | New: 13
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Macquarie analyst Kevin Smithen raised his price target on Level 3 Communications (NYSE: LVLT) to $44 saying the company finally turned the corner. However the analyst stopped short of upgrading the stock and maintained a Neutral rating.
"After tracking LVLT on and off for nearly 2 decades, we are starting to believe that it has finally turned the corner and begun to fulfill its potential as a core internet infrastructure investment," Smithen said.
He added, "Following meetings Tuesday in Colorado with LVLT CEO Jeff Storey and other mgmt., as well as private fiber infrastructure players, we raise our EBITDA forecasts above consensus for Q1, 2014 and 2015. We believe a number of secular and cyclical tailwinds will begin to accelerate LVLT’s y/y CNS revenue growth as we move thru 2014. We now estimate 5.3% y/y CNS growth exiting Q414 vs. 3.7% previously. As concerns over slowing revenue growth and peaking ROIC impact the wireless space, we expect capital to continue to flow into the wireline data sector. We believe LVLT’s 7.1x ’15E EV/EBITDA multiple looks reasonable for its strongly double-digit EBITDA growth over the next couple of years."
For an analyst ratings summary and ratings history on Level 3 Communications click here. For more ratings news on Level 3 Communications click here.
Shares of Level 3 Communications closed at $40.75 yesterday.
"After tracking LVLT on and off for nearly 2 decades, we are starting to believe that it has finally turned the corner and begun to fulfill its potential as a core internet infrastructure investment," Smithen said.
He added, "Following meetings Tuesday in Colorado with LVLT CEO Jeff Storey and other mgmt., as well as private fiber infrastructure players, we raise our EBITDA forecasts above consensus for Q1, 2014 and 2015. We believe a number of secular and cyclical tailwinds will begin to accelerate LVLT’s y/y CNS revenue growth as we move thru 2014. We now estimate 5.3% y/y CNS growth exiting Q414 vs. 3.7% previously. As concerns over slowing revenue growth and peaking ROIC impact the wireless space, we expect capital to continue to flow into the wireline data sector. We believe LVLT’s 7.1x ’15E EV/EBITDA multiple looks reasonable for its strongly double-digit EBITDA growth over the next couple of years."
For an analyst ratings summary and ratings history on Level 3 Communications click here. For more ratings news on Level 3 Communications click here.
Shares of Level 3 Communications closed at $40.75 yesterday.
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