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Uniti Group -7.9% as Citi cuts to Neutral on Windstream woes

Published 09/26/2017, 11:46 AM
© Reuters.  Uniti Group -7.9% as Citi cuts to Neutral on Windstream woes
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  • Uniti Group (NASDAQ:UNIT) has tumbled 7.9% as lingering concerns at former parent Windstream (WIN -7.1%) have led Citigroup (NYSE:C) to downgrade Uniti to Neutral.
  • Windstream today is facing a notice of default from a large bondholder (surely Aurelius) tied to its spin-off of Communications Sales & Leasing (now Uniti), and its already widening bond spreads might "fuel further near-term underperformance for Uniti," says analyst Michael Rollins. (h/t Bloomberg)
  • The market looks like it's anticipating a cut in Windstream's lease payments, he says.
  • He's cut his price target on UNIT to $18 from $27; shares today have fallen to $15.99, implying 12.6% upside from here.
  • Previously: Windstream -5.6% after noteholder claims default in spin-off deal (Sep. 26 2017)
  • Now read: Why I Didn't Buy More Uniti Group Last Week


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