FYBR - Frontier Communications rises as Morgan Stanley takes off Sell sign

Frontier Communications (NASDAQ:FYBR) is 1.8% higher Thursday after an upgrade to Equal Weight from Underweight at Morgan Stanley, which notes an easing of funding pressure and a "decent start to the year." The stock bucked a down market to move higher after beating profit expectations with its first-quarter results earlier this month. The results were generally in line with expectations, Morgan Stanley's Simon Flannery says, and notably it reaffirmed 2022 guidance. On Morgan Stanley's numbers, the stock is now trading at about 6.5x 2023 EBITDA, vs. around 7.6x at the time the firm initiated coverage. Frontier also recently raised $1.2 billion in debt to address near-term funding. "We now model the company not needing additional capital until late 2024," Flannery says. Why isn't the firm moving to Overweight on Frontier? "Although we do believe management is charting the right path forward for the company with the fiber build strategy, we

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Frontier Communications rises as Morgan Stanley takes off Sell sign