Frontier Communications Parent, the Communication Services sector company, was revisited by a Wall Street analyst yesterday. Analyst Gregory Williams from TD Cowen maintained a Hold rating on the stock and has a $38.50 price target.
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Gregory Williams has given his Hold rating due to a combination of factors that reflect both positive and challenging aspects of Frontier Communications Parent’s current situation. The company reported strong quarterly results with significant fiber subscriber additions and an increase in Consumer fiber ARPU, which contributed to an 8% rise in EBITDA. These positive developments indicate that Frontier is reaching a critical mass in its fiber broadband segment, which is a promising sign for future growth.
However, there are concerns that temper the optimism. The elevated capital expenditures and the company’s high leverage are notable challenges, although there is some relief expected from tax benefits under the OBBBA. Additionally, while the company is making strides in subscriber penetration, regulatory hurdles, particularly in California, pose potential delays. These mixed factors lead to a balanced outlook, justifying the Hold rating as the company navigates both growth opportunities and operational challenges.
FYBR’s price has also changed slightly for the past six months – from $35.800 to $36.600, which is a 2.23% increase.