Deutsche Bank Initiates “Hold” Rating on CenturyLink (CTL)
Deutsche Bank has initiated coverage of communications company, CenturyLink, Inc. (CTL).
The firm has begun coverage of CTL with a “Hold” rating and a $35 price target. This price target suggests a -3% decline from the stock’s current price of $36.16.
An analyst from the firm commented, “we view CTL as the best positioned operator in the traditional wireline services segment with the safest dividend and most attractive overall cash return policy. However, we believe that current valuation (6% dividend yield, 5.8x ‘13E EBITDA) appropriately balances these factors against an outlook for sustained pressures to margins and cash flows (even as the top line returns to growth) and a projected 1/3rd decline in Adjusted FCF over the next 3 years due to ramping cash taxes (as the benefits of bonus depreciation reverse).”
CenturyLink shares were down 25 cents, or -0.69% during premarket trading Tuesday. The stock has declined -6% in the past year.
The Bottom Line
Shares of CenturyLink, Inc. (CTL) have a 5.97% yield, based on Monday’s closing price of $36.16.
CenturyLink, Inc. (CTL) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.2 out of 5 stars.
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