DA Davidson Reiterates “Underperform” Rating for CenturyLink (CTL)
CenturyLink (NYSE:CTL)‘s stock had its “underperform” rating reiterated by research analysts at DA Davidson in a report released on Monday, Analyst Ratings News reports. They currently have a $28.00 price target on the stock, down from their previous price target of $30.00. DA Davidson’s price objective would indicate a potential downside of 15.18% from the stock’s previous close.
The analysts wrote, “CTL will announce its Q3 results after the close on November 6th and host an earnings call at 5 pm ET. We expect earnings to be at the lower end of guidance due to higher outside plant maintenance costs as a result of seasonality (more maintenance in summer months) and overtime from the recent flooding in Colorado. CTL has slowed its access line loss from 6.4% in early 2012 to a 5.8% annual pace in Q2’13 by ‘encouraging’ new DSL subscribers with a cheaper $19.95 per month rate if they take a voice line as well. However, its DSL subscriber growth has stalled recently with the loss of 6,000 subs in Q2, and we think the problems are more than temporary. With only 7.4 million households, or 35% of a total footprint of 20-22 million households covered by fiber to the node, CTL has a lower speed product than its cable competitors, and we think CTL will have to raise capex in 2014 to accelerate fiber to the node.”
CenturyLink (NYSE:CTL) traded down 0.27% during mid-day trading on Monday, hitting $32.92. 594,765 shares of the company’s stock traded hands. CenturyLink has a 1-year low of $31.01 and a 1-year high of $42.01. The stock’s 50-day moving average is $32.28 and its 200-day moving average is $34.90. The company has a market cap of $19.774 billion and a P/E ratio of 19.10.
CenturyLink (NYSE:CTL) last issued its quarterly earnings data on Wednesday, August 7th. The company reported $0.69 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.67 by $0.02. The company had revenue of $4.53 billion for the quarter, compared to the consensus estimate of $4.52 billion. During the same quarter last year, the company posted $0.65 earnings per share. CenturyLink’s revenue was down 1.9% compared to the same quarter last year. On average, analysts predict that CenturyLink will post $2.71 earnings per share for the current fiscal year.
A number of other analysts have also recently weighed in on CTL. Analysts at Zacks reiterated a “neutral” rating on shares of CenturyLink in a research note to investors on Thursday, September 19th. They now have a $34.00 price target on the stock. Separately, analysts at Nomura upgraded shares of CenturyLink from a “reduce” rating to a “neutral” rating in a research note to investors on Friday, August 23rd. They now have a $33.00 price target on the stock, up previously from $30.00. Finally, analysts at RBC Capital cut their price target on shares of CenturyLink from $39.00 to $36.00 in a research note to investors on Friday, August 9th. They now have a “sector perform” rating on the stock. Three equities research analysts have rated the stock with a sell rating, seven have assigned a hold rating and seven have assigned a buy rating to the company. The company currently has a consensus rating of “Hold” and an average price target of $37.38.
CenturyLink, Inc (NYSE:CTL) is an integrated communications company.
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