Canaccord Maintains Buy On Level 3 Communications Following Solid 2Q14 Results


Level 3 Communications (LVLT) yesterday reported solid second quarter results with better-than-expected revenue in both core CNS and wholesale, as well as improving margins.

In reaction to the earnings, Canaccord Genuity analyst Greg Miller released a report yesterday where he reiterated a Buy rating on LVLT and raised his price target to $55 (from $50).

Miller wrote, “We note international CNS enterprise revenue was stronger than expected and more than compensated for a modest shortfall in North America relative to our estimates. Management reiterated guidance and affirmed its expectation of closing the tw telecom acquisition in 4Q14”. The analyst continued, “Revenue growth accelerating – 2Q14 CNS revenue growth accelerated sequentially with stronger international growth driving upside to our estimate. Management noted 2Q bookings also increased sequentially and, given no change in expectations relative to historical trends – i.e. a stronger 2H – we expect momentum to build into 2015”.

According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform analyst Greg Miller has a 5.3% average return and a 72.2% success rate. Miller has a 17.1% average return when recommending LVLT, and is ranked #994 out of 3189 analysts.

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