UBS Maintains a 'Buy' on Frontier Communications (FTR); Dividend Cut Disappointing
Tweet
Share
E-mailGet Alerts FTR Hot Sheet
Price: $0.26 --0%
Rating Summary:
6 Buy, 11 Hold, 8 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 33 | Down: 45 | New: 4
Rating Summary:
6 Buy, 11 Hold, 8 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 33 | Down: 45 | New: 4
Join SI Premium – FREE
UBS maintains a 'Buy' on Frontier Communications (NASDAQ: FTR) price target lowered from $9 to $5.
UBS analyst says, "FTR cut its dividend by 47% to $0.40/sh. Given better than expected 4Q results, positive commentary on trends and higher synergies, we are surprised by the timing and the magnitude of the cut. Based on mgmt’s outlook for ~$950M in FCF in 2012, this implies a 42% payout, the lowest in the peer group."
"In 2012, we expect revenues to decline 6.1% to $4.9B, EBITDA to fall 2.5% to $2.4B while FCF falls 8.0% to $1.0B. We expect to see improvement in 2H results vs. 1H as the completion of the integration helps revenue and expense trends." (UBS cuts FY12 EPS estimate from $0.33 to $0.28)
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 $4.46 yesterday.
UBS analyst says, "FTR cut its dividend by 47% to $0.40/sh. Given better than expected 4Q results, positive commentary on trends and higher synergies, we are surprised by the timing and the magnitude of the cut. Based on mgmt’s outlook for ~$950M in FCF in 2012, this implies a 42% payout, the lowest in the peer group."
"In 2012, we expect revenues to decline 6.1% to $4.9B, EBITDA to fall 2.5% to $2.4B while FCF falls 8.0% to $1.0B. We expect to see improvement in 2H results vs. 1H as the completion of the integration helps revenue and expense trends." (UBS cuts FY12 EPS estimate from $0.33 to $0.28)
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 $4.46 yesterday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Citi Downgrades Legal & General Group PLC (LGEN:LN) (LGGNF) to Sell
- Stephens Downgrades Papa John\'s (PZZA) to Equal Weight
- ICICI Securities Downgrades Biocon Ltd (BIOS:IN) to Sell (5)
Create E-mail Alert Related Categories
Analyst Comments, Analyst EPS Change, Analyst EPS View, Analyst PT ChangeRelated Entities
UBS, DividendSign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
