Frontier Communications Corp. (NYSE:FTR)‘s stock had its “buy” rating reiterated by stock analysts at Nomura in a report issued on Friday, AnalystRatingsNetwork.com reports. They currently have a $5.50 price target on the stock. Nomura’s price target would indicate a potential upside of 20.88% from the company’s current price.
The analysts wrote, “Frontier’s 2Q13 results were highlighted by better customer results, particularly Broadband net additions. Revenue and Adj. EBITDA were largely as expected, while free cash flow was ahead of our forecast on the timing of capital spending. Guidance was maintained, most importantly for the $825-925mn in free cash flow that supports dividend payments and debt reduction. Management again reiterated the ability to use free cash flow and cash on hand to meet all obligations in the coming years. We continue to view the dividend as the main attraction for Frontier shares, and expect free cash flow to continue to be stable or modestly decline over time. Our updated $5 target price (from $5.50) is based on our DCF analysis using 4.5x terminal EBITDA and a 7.4% cost of capital.”
Other equities research analysts have also recently issued reports about the stock. Analysts at Zacks reiterated a “neutral” rating on shares of Frontier Communications Corp. in a research note to investors on Thursday, July 4th. They now have a $4.25 price target on the stock. Analysts at BMO Capital Markets initiated coverage on shares of Frontier Communications Corp. in a research note to investors on Thursday, May 30th. They set an “outperform” rating and a $5.00 price target on the stock.
Three analysts have rated the stock with a sell rating, seven have given a hold rating and four have issued a buy rating to the company’s stock. Frontier Communications Corp. currently has an average rating of “Hold” and an average price target of $4.73.
Shares of Frontier Communications Corp. (NYSE:FTR) traded up 0.44% on Friday, hitting $4.57. The stock had a trading volume of 219,431 shares. Frontier Communications Corp. has a 52 week low of $3.71 and a 52 week high of $5.15. The stock has a 50-day moving average of $4.35 and a 200-day moving average of $4.19. The company has a market cap of $4.569 billion and a P/E ratio of 45.50.
Frontier Communications Corp. (NYSE:FTR) last posted its quarterly earnings results on Wednesday, August 7th. The company reported $0.06 earnings per share (EPS) for the quarter, meeting the consensus estimate of $0.06. The company had revenue of $1.19 billion for the quarter, compared to the consensus estimate of $1.19 billion. During the same quarter in the previous year, the company posted $0.08 earnings per share. The company’s revenue for the quarter was down 5.4% on a year-over-year basis. Analysts expect that Frontier Communications Corp. will post $0.22 EPS for the current fiscal year.
The company also recently declared a quarterly dividend, which is scheduled for Monday, September 30th. Stockholders of record on Monday, September 9th will be given a dividend of $0.10 per share. This represents a $0.40 dividend on an annualized basis and a yield of 8.79%. The ex-dividend date of this dividend is Thursday, September 5th.
Frontier Communications Corporation (NYSE:FTR) is a communications company providing services primarily to rural areas and small and medium-sized towns and cities in the United States.
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