Frontier Communications initiated with a Buy at UBS

UBS initiated coverage of Frontier Communications with a Buy rating and $33 price target. After years of declines, the company has emerged as a growing fiber provider, the analyst tells investors in a research note. Over the next three years, the firm expects fiber to represent 65% of revenue and 75% of EBITDA for Frontier. This should drive accelerating growth, contends UBS. With accelerating EBITDA growth, a path to free cash flow breakeven and rising strategic value for fiber, the firm sees an attractive risk/reward for the shares.