Accumulation By Jana Partners Of Frontier Communications Highlights Chronic Undervaluation: Analyst
Portfolio Pulse from Anusuya Lahiri
Benchmark analyst Matthew Harrigan has reiterated a Buy rating for Frontier Communications Parent, Inc (NASDAQ:FYBR) with a $35 price target. This follows Jana Partners' accumulation of a new position in the company and suggestion for Frontier to sell itself. Harrigan believes this highlights FYBR's chronic undervaluation. He also mentioned the potential for further copper conversions with government subsidy benefits that could provide up to $15 potential upside not included in the price target. However, he admits this is unlikely to be realized until later in the decade. Frontier is the largest pure-play fiber provider in the U.S. and is expected to generate over $3.0 billion in 2023 fiber top line, increasing 12%+ annually to more than $5.4 billion in 2028.

October 18, 2023 | 5:50 pm
News sentiment analysis
Sort by:
Ascending
POSITIVE IMPACT
Benchmark analyst Matthew Harrigan has reiterated a Buy rating for Frontier Communications Parent, Inc (NASDAQ:FYBR) with a $35 price target. This follows Jana Partners' accumulation of a new position in the company and suggestion for Frontier to sell itself. Harrigan believes this highlights FYBR's chronic undervaluation.
The reiteration of a Buy rating by Benchmark analyst Matthew Harrigan and the setting of a $35 price target indicates a positive outlook for Frontier Communications. The accumulation of a new position by Jana Partners and their suggestion for Frontier to sell itself further highlights the company's undervaluation, which could potentially attract more investors. However, the realization of the potential upside from further copper conversions is not expected until later in the decade, which could limit the short-term impact on the stock price.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100