- Windstream (NASDAQ:WIN) has slid, -7.2%, as UBS downgrades shares to Sell and questions the stability of its dividend -- one of the stock's stronger attributes.
- Difficult trends should continue, says Batya Levi: "Windstream shares have been pressured by dividend-coverage concerns, its relationship with CSAL and worsening fundamentals. We expect the declining trend in revenues and EBITDA to continue to weigh on shares."
- The company's remaining stake in Communications Sales & Leasing (CSAL), its REIT spinoff, is key to covering a dividend with a yield of 7.75%.
- UBS is expecting Q2 revenues to slip 3.4% Y/Y to $1.42B; with relative strength in Consumer/SME while Enterprise/Wholesale continues to fall.