FYBR - Frontier Communications gains 6% as Raymond James boosts to Strong Buy
Frontier Communications ( NASDAQ: FYBR ) rose a healthy 6% early Monday as Raymond James upgraded the stock to Strong Buy, reacting to fourth-quarter earnings with positivity for the company's post-bankruptcy trajectory.
Friday's fourth-quarter earnings report showed positive financials that drew analyst praise, though a hefty stock drop was pinned to a 2023 outlook that seemed conservative, and came in a broader market downdraft.
"Not much was immune to Friday's market beating, but the drop in shares of FYBR was particularly curious given the impressive execution on 4Q that beat all expectations," analyst Frank Louthan IV said.
Investors have shown concern that there would be a broad-based slowdown in fiber expansion, he noted, so a lower build outlook compared to 2021's analyst day projections looks like the "main excuse to sell, combined with possible fears over JV expansion watering down ownership and returns."
Still, the fourth quarter showed a continued inflection in fiber subscription adds - "a trend we expect to continue, and which should bode well for share price appreciation."
He's bumped his price target to $37, now implying 33% upside.
For more detail, dig into Frontier Communications' ( FYBR ) annual report filing .
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Frontier Communications gains 6% as Raymond James boosts to Strong Buy