Nomura Securities Upgrades Windstream (WIN) to Neutral

Nomura Securities upgraded Windstream (NASDAQ: WIN) from Reduce to Neutral with a price target of $13.00 (from $7.50).

Analyst Adam Ilkowitz comments, "We previously viewed the Windstream dividend as unsustainable long term, with the high payout of free cash flow misaligned with the goal of revenue growth. This pressure grew with the resumption of cash tax payments in the coming years, particularly if bonus depreciation isn’t extended. With this transaction, Windstream permanently lowers its pro forma tax bill (by half on our estimates) while sustaining the elevated leverage it currently carries. By transitioning some assets into a REIT, Windstream is able to capture that in the form of higher valuation despite the dividend cut."

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 $11.83 yesterday.

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