Level 3 Communications Stock Rating Reaffirmed by DA Davidson (LVLT)
Level 3 Communications (NASDAQ:LVLT)‘s stock had its “neutral” rating reaffirmed by equities research analysts at DA Davidson in a research note issued to investors on Friday, American Banking and Market News reports. They currently have a $25.50 price target on the stock, up from their previous price target of $23.50. DA Davidson’s target price suggests a potential upside of 0.04% from the company’s current price.
The analysts wrote, “On August 29th, LVLT announced a 6.5% global headcount reduction that equates to almost 700 people. The goal of the cut is to streamline LVLT’s organization. Most of the cuts will come in non-customer facing jobs, although the bottom quintile of the sales force is also under review. In the U.S., the majority of the cuts have already taken place, and internationally they will happen by the end of September. LVLT will take a Q3 severance charge of ~$30 million or $0.14 per share, according to the 8-K filed today. We expect $45-$50 million in annual SG&A savings due to the cuts and have added the one time severance expense into our model.”
A number of other analysts have also recently weighed in on LVLT. Analysts at Macquarie initiated coverage on shares of Level 3 Communications (NASDAQ:LVLT) in a research note to investors on Monday, August 5th. They set a “neutral” rating and a $24.00 price target on the stock. Separately, analysts at Jefferies Group raised their price target on shares of Level 3 Communications (NASDAQ:LVLT) from $22.00 to $24.00 in a research note to investors on Thursday, August 1st. They now have a “hold” rating on the stock. Finally, analysts at UBS AG cut their EPS estimates on shares of Level 3 Communications (NASDAQ:LVLT) in a research note on Thursday. They now have a $22.00 price target on the stock.
Six investment analysts have rated the stock with a hold rating and three have given a buy rating to the company’s stock. Level 3 Communications presently has an average rating of “Hold” and an average target price of $23.93.
Shares of Level 3 Communications (NASDAQ:LVLT) traded up 1.45% on Friday, hitting $25.86. The stock had a trading volume of 561,370 shares. Level 3 Communications has a 52 week low of $17.95 and a 52 week high of $26.17. The stock has a 50-day moving average of $22.66 and a 200-day moving average of $21.53. The company’s market cap is $5.758 billion.
Level 3 Communications (NASDAQ:LVLT) last issued its quarterly earnings data on Wednesday, July 31st. The company reported ($0.11) earnings per share for the quarter, missing the analysts’ consensus estimate of ($0.07) by $0.04. The company had revenue of $1.57 billion for the quarter, compared to the consensus estimate of $1.59 billion. During the same quarter last year, the company posted ($0.29) earnings per share. Level 3 Communications’s revenue was down 1.3% compared to the same quarter last year. Analysts expect that Level 3 Communications will post $-0.45 EPS for the current fiscal year.
Level 3 Communications, Inc (NASDAQ:LVLT) is a facilities-based provider of a range of integrated communications services.
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