Report
Michael Hodel
EUR 147.86 For Business Accounts Only

Frontier Communications Struggles as Verizon Integration Continues; Shares Undervalued

Frontier Communications posted ugly third-quarter earnings, as the Verizon transition and integration efforts resulted in steep customer losses. We expect these issues will prove transitory, but the firm clearly has a lot to prove over the next several quarters. In the meantime, leverage continues to tick higher. We may reduce our fair value estimate modestly, but we believe Frontier shares are undervalued. Financial leverage creates a high degree of uncertainty, however, despite what we view as...
Underlying
Frontier Communications Corporation Class B

Frontier Communications is a holding company. Through its subsidiaries, the company is a provider of communications services. The company conducts business with both consumer and commercial customers. For consumer customers, the company provides broadband, video, voice and other services and products. The company delivers these services over a combination of fiber and copper-based networks. The company's commercial customers consist of: small, medium and larger enterprise customers, whereby the company provides services including broadband service, Ethernet service, circuit-based services, SD-WAN, and managed Wi-Fi; and wholesale customers, which buy both voice and data services to supplement their own network infrastructure.

Provider
Morningstar
Morningstar

Morningstar, Inc. is a leading provider of independent investment research in North America, Europe, Australia, and Asia. The company offer an extensive line of products and services for individual investors, financial advisors, asset managers, and retirement plan providers and sponsors.

Morningstar provides data on approximately 530,000 investment offerings, including stocks, mutual funds, and similar vehicles, along with real-time global market data on more than 18 million equities, indexes, futures, options, commodities, and precious metals, in addition to foreign exchange and Treasury markets. Morningstar also offers investment management services through its investment advisory subsidiaries and had approximately $185 billion in assets under advisement and management as of June 30, 2016.

We have operations in 27 countries.

Analysts
Michael Hodel

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