CenturyLink Inc Receives a Buy from Oppenheimer

By Austin Angelo

In a report released today, Timothy Horan from Oppenheimer maintained a Buy rating on CenturyLink Inc (NYSE: CTL), with a price target of $20. The company’s shares closed yesterday at $17.58.

Horan noted:

“On a pro forma basis 4Q17 results were in line, with normalized revenue and EBITDA down ~2% YOY. FY18 guidance implies after dividend FCF in the $400 million range on a recurring basis. This is ~$400 million above our estimate, entirely from lower CAPX, which is a long-term strategic mistake, in our opinion, as cable and wireless competition will intensify. Regardless, guidance for FCF margins implies a stable dividend payout ratio in the 80% area; negatively, the firm value is above 7x EBITDA with a high 4.3x debt-to-EBITDA. Positively, management was upbeat on sales force integration, which is complete after a turbulent quarter. Estimates are under review.”

According to TipRanks.com, Horan is a top 25 analyst with an average return of 15.5% and a 76.6% success rate. Horan covers the Technology sector, focusing on stocks such as Interxion Holding NV, Boingo Wireless Inc, and Zayo Group Holdings.

CenturyLink Inc has an analyst consensus of Moderate Buy, with a price target consensus of $20.65.

The company has a one-year high of $27.61 and a one-year low of $13.16. Currently, CenturyLink Inc has an average volume of 14.37M.

Based on the recent corporate insider activity of 72 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of CTL in relation to earlier this year.

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CenturyLink, Inc. is an investment holding company, which engages in the provision of integrated communications to residential and business customers. It operates through Business and Consumer segment.