Frontier Communications initiated with an Outperform at Wolfe Research

Wolfe Research initiated coverage of Frontier Communications with an Outperform rating and $27 price target. The stock’s current “depressed” multiple gives the company “little credit for a momentous inflection from DSL incumbent to fiber insurgent,” says the analyst, who notes that Frontier is now the U.S.’s second fastest growing fiber broadband provider while being half-way through upgrading 10M homes to fiber. If Frontier “never laid down another fiber cable, the value of today’s fiber arguably equals” the current enterprise value, argues the analyst, who sees sustained mid-single digit percentage EBITDA growth exiting 2023.