NEW YORK (TheStreet) -- Frontier Communications (FTR) shares are down -2.2% to $6.64 on Wednesday after being downgraded to "underweight" from "equal weight" by analysts at Morgan Stanley (MS) who have a $5.20 price target of the company's shares.
The firm believes that the stock is vulnerable as it expects to see the communications industry face secular pressures in the short term.
The firm's price target represents a potential downside of 21.6%.
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TheStreet Ratings team rates FRONTIER COMMUNICATIONS CORP as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
"We rate FRONTIER COMMUNICATIONS CORP (FTR) a BUY. This is driven by a few notable strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its compelling growth in net income, good cash flow from operations, solid stock price performance, impressive record of earnings per share growth and expanding profit margins. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated."
Highlights from the analysis by TheStreet Ratings Team goes as follows: