Wall Street’s take on Windstream
In the previous part of the series, we learned about Windstream Holdings’ (WIN) value proposition in the US wireline market, and how this compares with the value of Frontier Communications (FTR) and CenturyLink (CTL). We also learned about the company’s recent transaction for its stake in CS&L (CSAL). In this part, we’ll look at market views of the company. Let’s start with Wall Street’s take on the company.
As we can see in the above chart, ~69.2% of 13 analysts gave “hold” recommendations on the telecom company’s stock on June 15, 2016. 7.7% of analysts gave “buy” recommendations, and the remaining gave “sell” recommendations. On June 15, 2016, Wall Street analysts’ median target for the stock was $7, and the closing price was $8.95.
As of June 15, 2016, Windstream’s price had been in the positive territory in the past month and past year. Windstream’s stock price had increased by ~6.4% over the past month and ~21.9% over the past year.
For a diversified exposure to stocks of players in the US wireline telecom industry, you could consider the SPDR S&P 500 ETF (SPY). The ETF had a ~2.7% exposure to AT&T (T), Verizon (VZ), CenturyLink (CTL), Level 3 Communications (LVLT), and Frontier Communications (FTR) at the end of May 2016. In the next parts of the series, we’ll look at Windstream’s growth strategy in the US wireline space.