Frontier Communications: Analysts’ Ratings and Target Price

According to analysts’ consensus, Frontier Communications (FTR) stock has a mean target price of $2.31 and a current market price of $1.77, which suggests upside potential of 30.5% in the next 12 months.

Among the 12 analysts tracking Frontier Communications on May 24, five recommended a “hold,” while seven recommended a “sell.” None of the analysts recommended a “buy.”

About 67% of the 30 analysts tracking Charter Communications recommended a “buy,” 76% of the 33 analysts following Comcast (CMCSA) recommended a “buy,” and 12% of the 16 analysts following CenturyLink (CTL) recommended a “buy.”

On May 24, Frontier Communications had a trailing 12-month EV-to-EBITDA multiple of ~4.95x—compared to its peers. CenturyLink, Comcast, and Charter Communications had trailing 12-month EV-to-EBITDA multiples of ~4.78x, ~9.70x, and ~10.36x, respectively.

Frontier Communications expects its EV-to-EBITDA multiple in fiscal 2019 to be ~4.91x. In fiscal 2020, the EV-to-EBITDA multiple is expected to be ~5.15x.

In the trading session on May 24, Frontier Communications stock closed at $1.77, which is near its lower Bollinger Band level of $1.60. The level suggests that Frontier Communications stock is oversold.