UPDATE: Nomura Securities Downgrades Windstream (WIN) to Reduce

(Updated - August 8, 2012 10:22 AM EDT)

Nomura Securities downgraded Windstream (NASDAQ: WIN) from Neutral to Reduce and cut their price target from $12 to $8.50.

Analyst Mike McCormack comments: we are concerned with the increasingly uncertain economy, growing competition in the CLEC business, and Windstream’s limited free cash flow flexibility that is increasingly reliant on reduced capital spending to fund the dividend. There is increased risk with more volatile, lower-margin revenue mix. FCF payout ratio also limits flexibility. We don’t believe the company can further cut capital intensity from the guided 11-13% rate in 2013.

For an analyst ratings summary and ratings history on Windstream click here. For more ratings news on Windstream click here.

Shares of Windstream closed at $10.26 yesterday.

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