In a report released yesterday, Eric Luebchow from Wells Fargo maintained a Buy rating on Frontier Communications Parent (FYBR – Research Report), with a price target of $31.00.
Eric Luebchow’s rating is based on the strong performance of Frontier Communications Parent Inc. (FYBR) in the first quarter of 2024, which showcased the company’s success in expanding its fiber offerings. The growth in fiber has effectively compensated for the decline in copper services, and overall company fundamentals appear to be on an upward trajectory. Luebchow also anticipates that the result of the ongoing strategic review could potentially accelerate the company’s growth or expand its Total Addressable Market (TAM).
The significant fiber infrastructure developments, with an addition of 322K Fiber to the Home (FTTH) locations, along with an increase in net broadband additions and Average Revenue Per User (ARPU), have contributed to a positive outlook. Moreover, Luebchow suggests that a potential partnership similar to the Gigapower model could alleviate capital expenditure burdens while still delivering high Internal Rates of Return (IRR), which supports his Buy rating and a $31 price target for FYBR’s stock. Despite a cyberattack, the financial impact is considered immaterial, underlining the robustness of Frontier Communications Parent’s business model and future plans.
According to TipRanks, Luebchow is a 2-star analyst with an average return of 0.4% and a 45.91% success rate. Luebchow covers the Real Estate sector, focusing on stocks such as Cubesmart, Equinix, and Public Storage.
In another report released on May 6, Bank of America Securities also reiterated a Buy rating on the stock 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 price target raised to $32 from $30 at Citi
- Frontier Communications price target lowered to $39 from $41 at TD Cowen
- Frontier Communications backs FY24 adjusted EBITDA view $2.2B-$2.25B
- Frontier Communications reports Q1 EPS 0c, consensus (8c)
- FYBR Earnings this Week: How Will it Perform?
