Level 3 Coverage Initiated by Analysts at Deutsche Bank. (LVLT)
Equities researchers at Deutsche Bank assumed coverage on shares of Level 3 (NASDAQ: LVLT) in a report issued on Tuesday, TheFlyOnTheWall.com reports. The firm set a “buy” rating and a $26.00 price target on the stock.
The analysts wrote, “Our Buy rating on Level 3 is based on forecast strong secular growth in global IP traffic and expected inflection points in LVLT’s revenue growth, FCF and net income which should allow it to unlock substantial value from its NOLs. Given our positive view, we believe recent underperformance (-15% YTD) represents an attractive entry point, with 32% pot’l upside to our $26 PT. LVLT provides a broad portfolio of telco services to enterprise and wholesale customers, leveraging 35K miles of undersea fiber, 105K intercity miles and 35K metro fiber miles to connect major traffic hubs, data centers and 15K on-net buildings. We believe these strategic assets position LVLT to benefit from robust growth in global IP traffic, which should increase 4-fold through 2016.”
Level 3 (NASDAQ: LVLT) traded up 2.50% on Tuesday, hitting $20.50. Level 3 has a 52-week low of $16.36 and a 52-week high of $25.99. The stock’s 50-day moving average is currently $20.39. The company’s market cap is $4.486 billion.
Level 3 (NASDAQ: LVLT) last released its earnings data on Tuesday, February 12th. The company reported ($0.16) earnings per share for the quarter, beating the consensus estimate of ($0.17) by $0.01. The company had revenue of $1.61 billion for the quarter, compared to the consensus estimate of $1.60 billion. During the same quarter in the prior year, the company posted ($0.80) earnings per share. The company’s quarterly revenue was up 2.2% on a year-over-year basis. Analysts expect that Level 3 will post $-0.11 EPS for the current fiscal year.
LVLT has been the subject of a number of other recent research reports. Analysts at Raymond James upgraded shares of Level 3 to a “market perform” rating in a research note to investors on Friday, March 8th. Finally, analysts at Canaccord Genuity cut their EPS estimates on shares of Level 3 in a research note on Wednesday. They now have a “hold” rating and a $16.00 price target on the stock. They previously had a $17.00 price target on the stock.
Four analysts have rated the stock with a hold rating and five have issued a buy rating to the company’s stock. The stock has a consensus rating of “Buy” and an average price target of $25.40.
Level 3 Communications, Inc. (NASDAQ: LVLT) is engaged in the communications business.
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