Analysts’ Ratings of Frontier Communications before 1Q16 Earnings
What to Expect from Frontier Communications’ 1Q16 Earnings
Frontier Communications’ stock performance
In the last part of this series, we looked at Frontier Communications’ (FTR) value proposition in the US wireline telecommunications, or telecom, space. We looked at the scale, forward dividend yields, and valuation multiples of Frontier Communications and other key players in the US telecom market. In this article, we’ll look at analysts’ views of the wireline telecom player. Let’s start with a recap of the company’s stock performance.
As of April 22, 2016, Frontier Communications’ stock has been in the green for both the past month and the past three months. Over the past month, the wireline company’s stock has risen ~8.1%. Over the past three months, it has risen ~29.1%.
Wall Street’s view of Frontier Communications
Now let’s look at Wall Street analysts’ opinions of Frontier Communications’ stock. In a set of 18 recommendations on the stock, ~72.2% were “buys” as of April 22. As seen in the above chart, ~22.2% of analysts gave FTR a “hold” recommendation, and the remaining ~5.6% of analysts gave it a “sell” recommendation.
In addition, analysts’ median target price for FTR is $6. The stock’s closing price was $5.63 on April 22.
For diversified exposure to US wireline telecom companies, you might consider investing in the iShares Core S&P 500 ETF (IVV). The ETF had a total of ~2.8% of its holdings in AT&T (T), Verizon Communications (VZ), CenturyLink (CTL), Level 3 Communications (LVLT), and Frontier Communications at the end of March 2016.
Browse this series on Market Realist: