CenturyLink (CTL) Stock Closes Lower, Rating Downgraded at Morgan Stanley

CenturyLink (CTL) shares fell today as the company's rating was cut to 'underweight' from 'equal weight' at Morgan Stanley Monday morning.
By Annie Palmer ,

NEW YORK (TheStreet) -- Shares of CenturyLink (CTL) - Get Report closed down by 1.28% to $30.92 on Monday, as Morgan Stanley cut the Monroe, LA-based communication company's stock to "underweight" from "equal weight" this morning.

The firm lowered its price target for CenturyLink to $27 from $31, based on uncertain gains from capital expenditures and growing regulatory risks, TheFly reports. 

Additionally, CenturyLink landed a contract to supply disaster recovery services to the OCC, the company announced today.

CenturyLink will work with the OCC to develop and manage a secure, cost-efficient disaster recovery service for its mission-critical systems using the company's on-demand server. The service will guarantee the systems remain online in the event of a natural or man-made disaster, CenturyLink noted. 

Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author. TheStreet Ratings has this to say about the recommendation:

We rate CENTURYLINK INC as a Hold with a ratings score of C+. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its impressive record of earnings per share growth, compelling growth in net income and good cash flow from operations. However, as a counter to these strengths, we find that the company has favored debt over equity in the management of its balance sheet.

You can view the full analysis from the report here: CTL

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