Frontier Communications (FTR) Stock Gets Rating Upgrade at Morgan Stanley

NEW YORK (TheStreet) --Frontier Communications Corp. (FTR) was upgraded to "overweight" from "underweight" at Morgan Stanley on Wednesday morning.

Shares of the communications company are higher by 4.67% to $5.15 in mid-morning trading.

The firm said it raised its rating on Frontier Communications based on a valuation call and the company's attractive dividend yield.

Morgan Stanley has a $6 price target on Frontier Communications, down from its previous $7 price target.

The rating upgrade came after the company's 26% sell-off in the year to date due to the pending financing for the Verizon (VZ) wireline assets, theflyonthewall.com reports.

Frontier Communications is a Stamford, CT-based telecommunications company engaged in providing services mostly to rural areas and small to medium sized towns and cities in the U.S. The company's offerings include a variety of voice, data, and TV services and products.

Separately, TheStreet Ratings team rates FRONTIER COMMUNICATIONS CORP as a Hold with a ratings score of C+. TheStreet Ratings Team has this to say about their recommendation:

"We rate FRONTIER COMMUNICATIONS CORP (FTR) 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 and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, generally higher debt management risk and disappointing return on equity."

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