The firm said it raised its rating on the company, which provides a variety of integrated communications services, based on Level 3 Communications' "prospects to improve organic revenue growth with an increasing focus on enterprise segment, improve cash flow generation from merger related savings...and benefit from multiple expansion as metro-fiber assets become strategically more attractive within the industry."
Citigroup upped its price target on Level 3 Communications stock to $55 from $44.
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Shares of Level 3 Communications are higher by 0.81% to $47.05 in pre-market trading this morning.
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."