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CenturyLink Backlash May Have Gone Too Far, Analyst Says
CenturyLink stock (CTL) is having another down day Tuesday following news that it will delay its 10-K filing, but at least one analyst is willing to bet that the market has gotten too negative on the stock.
The Back Story. On Monday, the company said that it would delay filing its 10-K, as it had uncovered “weaknesses” in its evaluation of assets related to its Level 3 acquisition, completed in late 2017. The company said that the issue shouldn’t cause it to restate financial results, yet not surprisingly the stock still slipped on the announcement.
Even before that news, CenturyLink had been struggling. A number of analysts have downgraded the stock this year. Guggenheim kicked off the parade, followed by Citigroup’s downgrade to sell , a note of caution from RBC Capital Markets, and, most recently, a ratings cut from Bank of America Merrill Lynch. In addition, the shares have been hurt by the company’s dividend cut, even if it was largely expected before CenturyLink made the announcement. The company’s peers in the wireline industry have fared even worse, with Windstream Holdings (WIN) recently filing for bankruptcy protection.
What’s New. Amid this gloomy outlook, Oppenheimer’s Timothy Horan writes that there’s still hope for bulls. He reiterated an Outperform rating and $20 price target on CenturyLink, writing that he’s still hopeful about the company’s ability to lower its leverage and deliver free-cash-flow stabilizing cost savings, which in turn would leave breathing room for capital returns to shareholders.
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https://www.barrons.com/articles/century...yptr=yahoo
![[Bild: CTLc1dl1438.png]](https://finviz.com/publish/030519/CTLc1dl1438.png)
CenturyLink stock (CTL) is having another down day Tuesday following news that it will delay its 10-K filing, but at least one analyst is willing to bet that the market has gotten too negative on the stock.
The Back Story. On Monday, the company said that it would delay filing its 10-K, as it had uncovered “weaknesses” in its evaluation of assets related to its Level 3 acquisition, completed in late 2017. The company said that the issue shouldn’t cause it to restate financial results, yet not surprisingly the stock still slipped on the announcement.
Even before that news, CenturyLink had been struggling. A number of analysts have downgraded the stock this year. Guggenheim kicked off the parade, followed by Citigroup’s downgrade to sell , a note of caution from RBC Capital Markets, and, most recently, a ratings cut from Bank of America Merrill Lynch. In addition, the shares have been hurt by the company’s dividend cut, even if it was largely expected before CenturyLink made the announcement. The company’s peers in the wireline industry have fared even worse, with Windstream Holdings (WIN) recently filing for bankruptcy protection.
What’s New. Amid this gloomy outlook, Oppenheimer’s Timothy Horan writes that there’s still hope for bulls. He reiterated an Outperform rating and $20 price target on CenturyLink, writing that he’s still hopeful about the company’s ability to lower its leverage and deliver free-cash-flow stabilizing cost savings, which in turn would leave breathing room for capital returns to shareholders.
...
https://www.barrons.com/articles/century...yptr=yahoo
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