In contrast to last week's article outlining three reasons to sell Frontier Communications, and as part of an ongoing series looking at the bull and bear cases for specific companies, today analyst/editor Brenton Flynn discusses three reasons investors might consider buying Frontier Communications (Nasdaq: FTR ) . Brenton still thinks the stock is risky, but there are a few reasons to remain optimistic.
The completion of a huge systems integration project stemming from Frontier's acquisition of Verizon assets a couple of years ago could start to help the company soon, allowing Frontier to save money and improve efficiency. Its valuation outdoes its competitors as well, trading at about seven times trailing free cash flow. Plus, for those that think the dividend is safe and the companies shares have found support, its 10% dividend yield looks attractive.
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