The analyst firm set a price target of $51 for the company. Level 3 has "set conservative cost-savings targets" for its merger with tw telecom (TWTC) , according to Macquarie analyst Kevin Smithen.
"In our view, TWTC should be a far easier business to integrate than previous LVLT deals due to its: 1) lack of int'l assets and close proximity to LVLT; and 2) TWTC was not itself a roll-up of other assets the way GLBC was. Finally, we feel that some of the 'flowback' and arb pressure from the deal has been the primary cause for the recent pullback, so we are less worried about these issues than we were a month ago," Smithen wrote.
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Separately, TheStreet Ratings team rates LEVEL 3 COMMUNICATIONS INC as a Hold with a ratings score of C+. TheStreet Ratings Team has this to say about their recommendation:
"We rate LEVEL 3 COMMUNICATIONS INC (LVLT) a HOLD. 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 revenue growth, impressive record of earnings per share growth and compelling growth in net income. However, as a counter to these strengths, we find that the company has favored debt over equity in the management of its balance sheet."