Level 3 Communications (LVLT) Stock Jumping, May Look for Buyer
NEW YORK (TheStreet) -- Shares of Level 3 Communications (LVLT) are up 3.88% to $56.48 on heavy trading volume after reports that the company is "reviewing strategic alternatives to maximize holder value, including outright sale or large buyback," Barron's reports.
Nearly 5.7 million shares of the Broomfield, CO-based communications company have traded hands so far today vs. the stock's average of 1.73 million per day.
Analysts at Citigroup said in a note that Level 3 is their "top pick" within their coverage group due to its growth, financial flexibility, valuation and strategic options.
Level 3 also has an "extensive" enterprise presence, Citi said.
Citigroup added that the company could be attractive to a cable company "looking to move up-market and accelerate its investment from the small- to medium-sized businesses segment into the enterprise market."
Separately, TheStreet Ratings rated this stock as a "buy" with a ratings score of B-.
The company's strengths can be seen in multiple areas, such as its good cash flow from operations, expanding profit margins, notable return on equity, increase in net income and largely solid financial position with reasonable debt levels by most measures.
Although no company is perfect, currently TheStreet Ratings does not see any significant weaknesses which are likely to detract from the generally positive outlook.
You can view the full analysis from the report here: LVLT
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.