- With more fallout from yesterday's analyst day, CenturyLink (NYSE:CTL) has dipped to a new 52-week low of $30.25, down 5.1% today, as JPMorgan downgrades shares to Neutral.
- The firm lowered its price target for CTL to $35, from $42.
- Meanwhile, UBS has reiterated its Buy rating and $39 price target, pointing to management assurances about maintaining a dividend yield of 6.76%.
- Management spent much of the day reiterating strategy, UBS said, but also "suggested there was some unexpected wholesale/CPE pressure in 2Q, leading us to believe the full year outlook (which mgmt would not affirm or deny) could be tweaked down on the 2Q call."
- "Mgmt reiterated the dividend is safe despite the inflation in cash taxes/payout next year (UBSe 85%). Post 2016, we estimate the payout will return to comfortable levels (60%-plus) while underlying business trends stabilize."