New Street Research - FRONTIER COMMUNICATIONS PARENT INC (FYBR) FYBR: Response to Management II

Report

New Street Research

Jonathan Chaplin

EUR 9253.00 For Business Accounts Only

FYBR: Response to Management II

Frontier’s management released a deck that argues for the current offer price of $38.50 and addresses countervailing arguments raised by us and others (LINK). We provide a comprehensive response in this report.

29/10/2024 1 EN

Underlying

FRONTIER COMMUNICATIONS PARENT INC

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US35909D1090

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New Street Research

Provided by our team of experienced analysts, our work is idea driven, based on independence of thought, sector expertise, and firmly focussed on fundamentals and valuation.

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Analysts

Jonathan Chaplin

Other Reports on these Companies

New Street Research

FYBR: Company worth at least $63 / share, based on mgmt. forecast

We are grateful for management’s most recent arguments in favor of the current deal price. Management asserts that a DCF is the best approach to value the Company, given a dearth of good comps. We will focus this response on management’s approach to the DCF. We show that, based on management’s own forecasts, a DCF yields a standalone value of at least $63 / share. We show that the Company is worth at least $131 / share to Verizon. We will respond to management’s thoughts on comps in the next report.

EUR 9253.00

12h / 5m 12h / 5m 1 EN

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FYBR: “You Don’t Have the Votes”

We have spoken to almost all the large, active holders of Frontier. The Company’s management do not have the votes to get the Verizon acquisition approved at this stage. We run through our analysis in this brief note.

EUR 9253.00

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FYBR: Response to Management II

FYBR: Company worth at least $63 / share, based on mgmt. forecast

FYBR: “You Don’t Have the Votes”

Liberty Global (Neutral, $23, +8%) Record low service revenue trends a headwind to value creation

PYPL US (BUY, TP: $100, +25%) Healthy Q3 beat; sneak preview for FY 25; model update

Eutelsat 1Q25: Revenue light; OneWeb funding concerns remain

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