“While our PT implies 17% upside potential, all of this is through the expected share price appreciation of CyrusOne (CONE, Buy, $22.67), which is 69% owned by CBB. We otherwise view CBB’s core telecom ops as fairly valued at 6x ‘13E EBITDA (in-line with traditional telco peers). In other words, we see no NT advantage to owning CONE through CBB. Over the LT, we expect that CBB will sell-down its stake in CONE in order to repay debt thereby boosting FCF that may fund a dividend. But, this could take 3-5 years, so we do not see any immediate catalyst related to a potential recapitalization of CBB.,” Deutsche Bank’s analyst wrote.
Cincinnati Bell traded up 4.20% on Tuesday, hitting $4.47. Cincinnati Bell has a 52-week low of $3.33 and a 52-week high of $5.89. The stock’s 50-day moving average is currently $5.04. The company’s market cap is $891.5 million.
CBB has been the subject of a number of other recent research reports. Analysts at Bank of America initiated coverage on shares of Cincinnati Bell in a research note to investors on Tuesday. They set an underperform rating and a $4.25 price target on the stock. Separately, analysts at Morgan Stanley initiated coverage on shares of Cincinnati Bell in a research note to investors on Tuesday. They set an equal weight rating on the stock. Finally, analysts at Zacks reiterated a neutral rating on shares of Cincinnati Bell in a research note to investors on Friday, December 28th. They now have a $5.50 price target on the stock.
Five analysts have rated the stock with a buy rating, three have assigned a hold rating, and one has issued an underweight rating to the company. The company currently has an average rating of overweight and a consensus target price of $5.41.
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