Frontier Communications Could Hit $20 In 18 Months

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About: Frontier Communications Corporation (FTR)
by: Russell Naisbitt
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Russell Naisbitt
Long/short equity, value, special situations, growth at reasonable price
Summary

FTR's make or break execution goal is debt reduction from free cash flow generation. Targeting $3 billion over 4 years. On track.

Maintaining FCF requires maintenance, if not growth, of revenue run rate and expense reduction. On track.

After disastrous Verizon acquisition, business continues to show signs of stabilization.

At around $5, the stock is priced as an option on the company’s survival.

FTR is a highly speculative buy for investors with an appetite for asymmetrical risk-reward. Targeting $20 in 12 - 24 months.

Note: If you have already familiarized yourself with Frontier Communications' (FTR) Q2 results, to save time you may want to scroll directly to the section titled, "My (Highly) Speculative Buy