Markets & Finance

Needham Initiates Level 3 Communications with 'Buy'

Needham initiated coverage of Level 3 Communications (LVLT) with buy and an $8 12-month target.

Analyst Vik Grover says he sees Level 3, which operates a 22,500-mile international Internet Protocol network, breaking away from the pack in network services and bandwidth markets -- aided by a strong liquidity position of $1.7 billion, annual EBITDA of several hundred million dollars, and its positive, operating free cash flow position.

Grover says the company managed through a communications downturn, and is starting to see signs of improvements, characterized by decreasing disconnects and better customer credit quality, but he thinks a return to organic growth is likely one or two quarters in the future. He sees substantial upside to earnings in 2004.

Cash Is for Losers

Sponsored Financial Commentaries

Sponsored Links

Buy a link now!

blog comments powered by Disqus