FYBR - Accumulation By Jana Partners Of Frontier Communications Highlights Chronic Undervaluation: Analyst | Benzinga
Benchmark analyst Matthew Harrigan reiterated Frontier Communications Parent, Inc (NASDAQ: FYBR) with a Buy and a $35 price target.
The re-rating follows the stock's positive reaction to the news of activist PE firm Jana Partners accumulating a new position and suggesting Frontier sell itself.
The analyst said this is unlikely in the current equity and especially rate environment. However, it certainly highlights FYBR's chronic undervaluation as he said it would be difficult to muster a price that aligns with the value perception of the company's management and board.
A further albatross is a sticky dent inflicted on telecom stocks by the high-profile lead pipe replacement concerns surfacing this summer. Frontier also has a unique potential offset buffer in 5 million incremental expansion locations beyond its 10 million sites committed to build.
Further possible copper ...