Shares of Frontier Communications (FTR) ended Wednesday’s trading day up 4.3 percent, making it TheStreet’s Move of the Day. The stock jumped after it was upgraded to BUY from NEUTRAL from the analysts at DA Davidson. The analysts said the company’s equity offering of $750 million and $1.75 billion in convertible preferred stock has removed its debt overhang. ‘Proceeds from the offering, along with debt financing to come later, will finance Frontier’s purchase of access lines from Verizon (VZ) in Florida, Texas and California that is expected to close [during the first half of 2016],’ wrote analyst James Moorman in a note. The analysts maintain a price target of $6.50 per share. The stock currently trades at approximately $5.40. At $5.40, the stock is trading at about 28 times more than its pre-share earnings last year, according to data compiled by Bloomberg. The analysts at Wells Fargo Securities maintain an OUTPERFORM rating, while Sanford C. Bernstein & Co. holds a MARKET PERFORM rating. The analysts at Morgan Stanley have an OVERWEIGHT/CAUTIOUS rating. Shares of Frontier Communications fell 19 percent since the start of the year. TheStreet’s Scott Gamm reports from New York.
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