BofA starts Frontier Communications on positive foot, sees 26% upside
Investing.com | Editor Emilio Ghigini
Published Apr 09, 2024 06:49AM ET
Tuesday, BofA Securities began coverage on Frontier Communications (OTC:FTRCQ) (NASDAQ:FYBR) stock, assigning a Buy rating and setting a price target of $30.00. The new price target suggests approximately a 26% upside from the current levels.
Frontier Communications, which provides wireline telecom services to over 2.9 million customers across 25 U.S. states, is recognized as one of the largest pure-play fiber-centric broadband providers in the country. BofA Securities sees Frontier as a company with significant potential to exceed market expectations.
The firm's positive outlook is based on several key factors. Frontier is reported to be on track to deliver a Compound Annual Growth Rate (CAGR) of 7% in EBITDA through the fiscal year 2027. Additionally, the company operates a fiber business model that yields a mid- to high-teens Internal Rate of Return (IRR).
Moreover, Frontier is actively seeking additional growth opportunities that could further enhance the company's value. BofA Securities' coverage initiation reflects confidence in Frontier's strategy and its potential to capitalize on the expanding broadband market. The firm's analysis suggests that Frontier Communications is well-positioned for future growth and profitability.
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