Amid Challenges, Analyst Recommends Investors Sell CenturyLink Stock; Some Do Just That
With CenturyLink facing revenue-growth and other challenges even after buying Level 3, an analyst recommended investors sell the stock. They appeared to do just that the day of his downgrade Wednesday. "Longer term challenges facing the company are significant. The…
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company will eventually realize all the synergies it’s going to realize and make all the other cost cuts and business improvements," wrote MoffettNathanson's Nick Del Deo, noting it's "not growing organically." A "large chunk of its revenue is in inexorable decline, another chunk is 'at risk' of that," he said. Cash flow is aided by $500 million in annual Connect America Fund Phase II money, he said: That ends in 2021, but most investors think it could occur on a perpetual basis. The telco declined to comment. The stock closed the day down 6.5 percent at $22.42.