Frontier Communications Parent (FYBR – Research Report), the Communication Services sector company, was revisited by a Wall Street analyst today. Analyst Shipra Pandey from Bank of America Securities maintained a Buy rating on the stock and has a $30.00 price target.
Shipra Pandey has given his Buy rating due to a combination of factors surrounding the potential of Frontier Communications Parent (FYBR). The telecommunications sector is generally on the lookout for growth stories, and FYBR presents a unique opportunity that could surpass its competitors. A key driver of Pandey’s optimism is the company’s ongoing fiber expansion, which is poised to significantly improve its Consumer business. The upcoming second-quarter analyst day is highlighted as a pivotal event that could further validate the company’s strategy and attract more investor interest, suggesting that the market currently undervalues FYBR’s turnaround potential.
Additionally, Shipra Pandey’s analysis is bolstered by the financial modeling of FYBR’s fiber initiative, which shows a promising internal rate of return (IRR) that exceeds the company’s weighted average cost of capital (WACC). The model includes conservative estimates for cost per passing, average revenue per user (ARPU), and penetration rates, yet still projects a 12% IRR over two decades. Despite some skepticism about fiber investment in the face of industry challenges, Pandey believes that recent financial transactions and market demand support a strong case for growth in ARPU and investor confidence. Therefore, the upcoming update to FYBR’s fiber IRR model is expected to address investor concerns and further support the Buy rating.
In another report released yesterday, Citi also upgraded the stock to a Buy with a $30.00 price target.
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Frontier Communications Parent (FYBR) Company Description:
Frontier Communications Parent Inc offers a variety of services to residential and business customers over its fiber-optic and copper networks, including video, high-speed internet, advanced voice, and Frontier Secure digital protection solutions. It offers communications solutions to small, medium, and enterprise businesses.
Read More on FYBR:
- Frontier Communications initiated with a Buy at BofA
- Frontier Communications receives $24.7M in grant funding by Connect Illinois
- Frontier Communications participates in a conference call with JPMorgan
- Frontier Communications price target raised to $41 from $39 at TD Cowen
- Frontier Communications sees FY24 adjusted EBITDA $2.2B-$2.25B
