Frontier Communications -6% as BofA downgrades on risk of dividend cut
Mar. 7, 2017 10:15 AM ET|About:
Frontier Communications Co... (FTR)|By:
Jason Aycock, SA News Editor
Frontier Communiations (NYSE:
FTR) is sliding, down 6% after BofA/Merrill Lynch downgraded shares to Neutral.
The firm slashed its price target on Frontier, to $2.50 from $7.50. Shares are down to $2.60 today.
Frontier investors risk experiencing a dividend cut eventually due to revenues falling at a "surprising rate," the firm says. The dividend is well covered now, with a payout ratio of 55% (but rising).
The market's starting to price in a cut and so management may proactively reduce the payment, analyst David Barden says.