The company yesterday said it was on track to buy Verizon Communication's (VZ) California, Texas and Florida wireline operations, with operations beginning April 1, the start of its second quarter.
Analysts are bullish as the "Transformational deal for Verizon Communicationsproperties delivers scale and synergies, helping Frontier sustain its (non-energy) S&P-high dividend yield of 8%+."
However, there are challenges within the U.S. telecom services sector as competition continues to grow.
The firm added overall risks for telecommunications companies such as weaker revenue growth and long-term execution risk.
Based in Norwalk, CT, Frontier Communications is a communications company that provides regulated and unregulated voice, data, and video services to residential, business, and wholesale customers in the U.S.
Separately, TheStreet Ratings currently has a "Hold" rating on the stock with a letter grade of C-.
The company's strengths can be seen in multiple areas, such as its robust revenue growth, good cash flow from operations and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and generally higher debt management risk.
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.
You can view the full analysis from the report here: FTR