- Windstream Holdings (NASDAQ:WIN) is 5.6% lower in premarket trading after being reinstated at Sell by Goldman Sachs, newly taking a dim view on wireline firms.
- It earlier downgraded Frontier to Sell (FTR is off 8.9% in early going), and has reinstated CenturyLink at Sell as well (CTL is 0.5% lower).
- As with its stance on Frontier, Goldman believes Windstream has thin dividend coverage. It's looking to declines in revenues as well as free cash flow.
- The sector as a whole faces hot competition and declines in broadband subscribers this year, the firm says.
- Goldman's price target on Windstream is $4.50, implying 30% downside.