S&P CAPITAL IQ MAINTAINS BUY RECOMMENDATION ON SHARES OF WINDSTREAM HOLDINGS
10:48a ET February 24, 2015 (S&P Capital IQ) Print
We cut our '15 operating EPS estimate to $0.14 from $0.27 and initiate '16's at $0.20. We reduce our 12-month target price by $1 to $10, on an enterprise value-to-EBITDA near peers. WIN posts Q4 operating EPS of $0.03 vs. $0.09, missing our $0.06 estimate, but matching the Capital IQ consensus view. Sales fell 3%, near expectations, hurt by lower carrier and wholesale revenue. We see higher enterprise, consumer and small business sales, but anticipate declines in the carrier business. We see muted near term growth but positively view WIN's REIT spin-off, expected to close in Q2.