On Jul 8, 2016, Zacks Investment Research upgraded Frontier Communications Corporation to a Zacks Rank #2 (Buy) from a Zacks Rank #3 (Hold). The company’s management anticipates strong broadband subscriber growth this year and believes growth will be driven by new marketing plans and programs.
Launch of Premium Service
Frontier has recently launched its latest line of services – Vantage – a premium digital platform to deliver HD TV, ultra-fast broadband and enhanced Voice over Internet Protocol (VoIP) services. We believe that the introduction of a premium brand will enable the company to maintain sustainable broadband subscriber growth.
Launches OTT Services
Meanwhile, Frontier has collaborated with other companies to offer an array of differentiated products, which includes the launch of its Over-the-Top (OTT) service, Freedom TV, as part of its video offerings for residential and business customers across multiple markets. The company has teamed up with TiVo Inc. and Amazon.com Inc. (AMZN - Free Report) for Freedom TV.
Purchases Verizon’s Wireline Assets
Frontier Communications has also completed the purchase of Verizon Communications Inc.’s (VZ - Free Report) wireline assets worth $10.5 billion in California, Florida and Texas. Currently, Frontier Communications operates landline business and provides broadband, video, voice and FiOS services in all of these three states. Notably, half of the network runs on high-quality fiber-to-the-home (FTTH) technology. Frontier Communications will be able to use them as part of its service expansion drive and leverage the same to provide off-net capabilities to its customers. We expect the Verizon deal to drive free cash flow and revenues at Frontier Communications, apart from helping the company maintain its practice of paying regular and incremental dividends.
Focus on Enterprise Businesses
Frontier Communications is leaving no stones unturned to derive benefits from the growing Business Service segment either. The company has been particularly targeting the Small and Medium Businesses (SMBs). It has been enhancing its Ethernet capabilities lately in its efforts to retain SMB customers with attractive plans.
Potential Headwinds
Frontier Communications expects to continue experiencing a decline in wireless backhaul revenues in 2016. This is because a number of its carrier partners could opt for Ethernet solutions at lower prices while some customers may switch to competitors. Thus, a deteriorating wireless backhaul business is expected to remain a major headwind for Frontier Communications, going ahead.
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Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
On Jul 8, 2016, Zacks Investment Research upgraded Frontier Communications Corporation to a Zacks Rank #2 (Buy) from a Zacks Rank #3 (Hold). The company’s management anticipates strong broadband subscriber growth this year and believes growth will be driven by new marketing plans and programs.
Launch of Premium Service
Frontier has recently launched its latest line of services – Vantage – a premium digital platform to deliver HD TV, ultra-fast broadband and enhanced Voice over Internet Protocol (VoIP) services. We believe that the introduction of a premium brand will enable the company to maintain sustainable broadband subscriber growth.
Launches OTT Services
Meanwhile, Frontier has collaborated with other companies to offer an array of differentiated products, which includes the launch of its Over-the-Top (OTT) service, Freedom TV, as part of its video offerings for residential and business customers across multiple markets. The company has teamed up with TiVo Inc. and Amazon.com Inc. (AMZN - Free Report) for Freedom TV.
Purchases Verizon’s Wireline Assets
Frontier Communications has also completed the purchase of Verizon Communications Inc.’s (VZ - Free Report) wireline assets worth $10.5 billion in California, Florida and Texas. Currently, Frontier Communications operates landline business and provides broadband, video, voice and FiOS services in all of these three states. Notably, half of the network runs on high-quality fiber-to-the-home (FTTH) technology. Frontier Communications will be able to use them as part of its service expansion drive and leverage the same to provide off-net capabilities to its customers. We expect the Verizon deal to drive free cash flow and revenues at Frontier Communications, apart from helping the company maintain its practice of paying regular and incremental dividends.
Focus on Enterprise Businesses
Frontier Communications is leaving no stones unturned to derive benefits from the growing Business Service segment either. The company has been particularly targeting the Small and Medium Businesses (SMBs). It has been enhancing its Ethernet capabilities lately in its efforts to retain SMB customers with attractive plans.
Potential Headwinds
Frontier Communications expects to continue experiencing a decline in wireless backhaul revenues in 2016. This is because a number of its carrier partners could opt for Ethernet solutions at lower prices while some customers may switch to competitors. Thus, a deteriorating wireless backhaul business is expected to remain a major headwind for Frontier Communications, going ahead.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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